Is market leading to consolidation in near term?

This question came to my mind due to various reasons, both technical & fundamental point of view.

Fundamental point of view we can discuss later, coming to technical aspect which is my favorite section we will see how it is spanning!

You might remember my last but one posting about markets (I posted it on 11th July), where in I have given information about market leading to

-->Two months bull run
-->One month bear correction

from last one year.


From August 2009 to October market has moved from 4400 to 5200 which is almost 18% & then almost 11% correction from top 5200 level to 4600.

And then from November 2009 to January 2010 market has moved from 4600 to 5300 which is 15-16%% and from then again it corrected to level of 4700 which is 12-13% from top.

Then from February 2010 to April 2010 market moved from 4700 to 5400 levels which is 15% gain & corrected to 4800 levels which is 13% from top.

And from that level market moved to 5450 level which is again 13% gain.
So now correction is expected? May be, but I am not sure!!!

But couple things you can notice from above details are

1. Bottoms are getting better...
2. But tops are not getting better as compared to bottoms

So I feel tops & bottoms are converging & leading to short to medium term consolidation around 5250-5300 level.

So same thing will reflect in large caps & best example is Reliance which is biggest company by market cap, has not performed from last 3-4 quarters.

So traders & investors can look into some small cap & mid caps.