Up or Down ?

The US markets were choppy and volatile in Friday’s trading. Bloomberg reports:
The S&P500 increased 0.7 percent to 879.73 after falling as much as 2.6 percent. The index swung between gains and losses at least 30 times and jumped more than 1 percent in the final four minutes of trading.

The same article goes on to say:
New York University Professor Nouriel Roubini, who predicted the global financial crisis, said shares will keep falling.
“I’m still quite bearish on U.S. and global equities,” he said in an interview with Bloomberg Television. “They’ve fallen a lot, but they might surprise on the downside. U.S. and global equities could be 15-to-20 percent lower before they start to recover toward the end of next year.”

Indian stock markets were an outstanding performer on Friday. An open saw the Nifty gap down by 100 points. Asian markets were down, while the 2900 level seemed to be offering strong resistance. On CNBC, my suggestion was to avoid any buying. I also suggested that traders who have built long positions may consider taking profits and wait for a dip to reenter. As the day developed, the Nifty rallied, finally recovering from its early morning losses, closing unchanged.
The intermediate uptrend remains up. This trend changes to sideways if the Nifty closes below 2800. Position traders should hold to their buying. The 2800 levels will change and move up if the Nifty rallies.