Despite the signs that a correction could start any day now, the index is still holding above support. A break below 1275 will signal the start of a correction of between 10 to 15%.
This local index confirmed support on Friday during the afternoon, after trading negative during the morning. The index is still trading within the "rising wedge" pattern. In the majority of cases this is a reversal pattern, so traders will have to monitor their stops closely. If support breaks, we might see a correction of about 15% in this index.
