Nifty Small Cap 100 index falls in five waves

The hourly chart of the Nifty Smallcap 100 index now shows a five-wave decline. In Elliott wave analysis, a five-wave move in any direction is directional. Meaning that it tells us which side the trend is. From that point on, every bounce becomes an opportunity to sell because the trend is down. The smalcap index was the last man standing in Indian markets, going up for 10 consecutive days. Now, it has reversed hard to the other side. Today, it is testing the 20-day moving average as well.