Chart reading: Sensex, Nifty show reversal, but will this rebound sustain?

As the market breadth turns negative, only sideways consolidation or V-shape recovery can revive the positive sentiment.

The benchmark indices, S&P BSE Sensex and Nifty50, have plunged over six per cent in the last 12 sessions, resulting in market participants losing confidence and waiting for revival of the trend. This sharp decline suggests that a rebound is imminent; however, the bigger question is will this recovery sustain and should investors start investing aggressively in the stocks? Technical charts does show rebound but suggest in order to sustain recovery, indices must witness sideways consolidation or a V-shape recovery to regain the positive sentiment and reverse market breadth. 

BSE SENSEX: A breach of 38,250 on the