For those that would like additional background on this topic, please refer to our earlier post on the subject.
Otherwise, in the chart below, the Sensex appears to be attempting a break-out from a three-year flag/consolidation pattern.
As of yet, NO break-out has occurred.
However, should the index push above line (3) in the chart, that would change.
A few items worth noting if a break-out occurs:
1) The index broke out from a similar pattern in 2003 as the emerging market secular growth cycle began
2) A break-out could see the index target the ~35,000 area (+100%), which represents 20 year channel resistance
3) A break-out should probably be viewed bullishly for global economies and markets given the importance of India as a key marginal driver of growth around the world
Again, nothing has happened so let’s not get too hot and bothered / excited just yet. However, want to pay close attention to this in the coming days/week.