Weekly Forecast

Announcement of CPI and PPI figures for October on Tuesday and Wednesday would suggest the inflation in US.  If the figures are high, it would jeopardize QE2 Bond Puchasing Program which is going to kick off on Friday. - Source: Reuters

Dow Jones Industrial Average (DJIA)

We have seen 11,451 as current top and DJIA has been trending down since Monday 8/11 in a series of black candles on Day Chart.   For the week, the Dow Jones industrial average shed 2.2 percent.

On Day Chart, DJIA has closed below 11,240 the Z1 line of Trapezium and at the same gap between EMA4 and EMA20 is narrow.  We expect a little bit of consolidation before the trend sets in.  Traders who are not sure, suggest to stay out as the data release this week may cause market to swing up and down awaiting breakout - favour to the down side :)

R3: 11,451
R2: 11,370
R1: 11,300
S1: 11,140
S2: 11,020
S3: 10,920

For Intraday Trading,
Short DJIA at 11,220 - 240, SL 40 points away, TG 11,120.
If market break your stop and travel higher, second place to short would be 11,370.
For Intraday Long, Entry at 11,195 SL 11,155, TG 11,295 or closed by EOD.


Nasdaq 100

Nasdaq 100 has made higher high this last Tuesday to 2,200 but closed at 2,137.  For the week, Nasdaq fell 1.96%.

R3: 2,200
R2: 2,180
R1: 2,150
S1: 2,120
S2: 2,100
S3: 2,070

Similar to DJIA, Short at 2,150 SL 2,160 target exit 2,120 or close by EOD.

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