Last Friday DJIA tested strong support 13000, rebounded, and closed at 13080.73 pts. For the week, DJIA fell 1.2%.
From weekly chart:
DJIA has posted a negative candle and therefore next week although it might continue trading sideways, we expect bias to the downside to test 13000 support again.
From intraday chart (1 hour and 30 mins):
DJIA is currently trading near overbought region and prone to a short term correction.
Aggressive short term trader can aim to short near 13120 – 13150, SL 13150-180, expect the market to test 13000 pts. again.
From a broader aspect, market is still trending up, a short term retracement is natural and we expect 13000 pts. to hold market up strongly (Fibo 50%), if this happen, then market will go up to 13250 level again.
Beware of Eurozone debt crisis and outbreak of negative fundamental news - it might affect the market - if DJIA cannot sustain above 13000, then it will go to next strong support level 12850.
Never a black candle!
Nasdaq 100 is going up so strong I see that nothing can stop it.
This week, we forecast NASDAQ 100 both going to test 2720 support or strong support 2700, and then rebound to make a new high this week.
Day Range: 25 pts.
Current support (intraday): 2720 pts.
Strong Support: 2700 pts.
Target for the week: 2740 pts.
Long Long Long :)