We are only 2 weeks before we close the trading book of 2010, is the rally already reaching its climax? DJIA has been trading in small range + diminished volume, the resistance is still well kept below 11451.
If DJIA manage to break above 11450 convincingly, it will travel north towards 11550 (15-Aug-2008 High).
If this market is well capped below 11451, and started to fall from 11410, we can see the first minor support at 11330, followed by 11200, strong support at 11000.
We suspect this small trading range to continue on Monday as Inflation data for November will dominate next week's economic calendar, with the U.S. Producer Price Index due on Tuesday and the U.S. Consumer Price Index set for Wednesday.
For shorties, plant your shorts near the resistance level but must put a stop loss to protect yourself in case DJIA break this resistance.
I have no recommendation for Long as the support level seems too far from the current price of 11410.
For myself I will prefer to plant my shorts at 11430, add another position when DJIA trade below 11330 and aim for 11200 as my target.
Nasdaq 100
Nasdaq 100 has been bullish with a good support at 2185 and now 2200.
Nasdaq has break above 2200 convincingly last Friday, mean Nasdaq 100 will go towards 2007 high 2239 again.
Aggressive trader can Long at 2200, SL -5 pts, with initial target 2220.
For shorties, be patient and wait for reversal sign on Daily Chart near its resistance level of 2220-40.
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