The steepest Decline in the Broad market in years has been ignored not just by Investors and traders alike but by Mr.Market itself. Of course by Mr.Market I mean Nifty. The new highs in Nifty are still not seeing a catch up by the Midcaps and Smallcaps. My analysis continues to show that Midcap cycles once turned down stay down for a few years. That said there is hope that they will now catch up with Nifty. Lets see.

However before that take a look at this chart, such massive divergences over months are a precursor to market reversals. The 2009 stock market bottom was one such event when the Nifty stopped short of making a new 52 week low in March of that year even as the Midcap index was sliding relentlessly. the end result was a long lasting bottom.