DJIA and Nasdaq 100

DJIA

Last week, Ayumi the Novice trader said....

The dynamic change is like a prelude to the next chapter of a music ensemble. I am waiting for a market breakout! I love the reduced day range, and I love increased volume, many transaction has been carried out, it can be traders closing position, it can be traders adding position for the next ride. Now tell me, which side are you in?

We mentioned that the Dynamic change (reducing trading volume and trading range) is like a prelude to the next chapter, and we began to see that effect on Tuesday immediately!

DJIA has come to test the support of 12000, lowest recorded 11987 and closed at 12134 for the week (DJIA was down -2.1% for the week).

The correction has come close to 12000, but DJIA never close below this level.
Early of this week, I expect DJIA to trade between 12150 - 12050 narrow range, pull up to 12300 before a meaningful breakout either to the top 12400 or bottom 12000.

If DJIA closes below 12000, I expect DJIA to test support 11800.
If DJIA closes above 12400, expect the uptrend continue to 12600.

Nasdaq 100

Correction is far more faster than imagination.
I thought the correction will take 2-3 weeks to complete, but 2 days, Nasdaq 100 tested the strong support 2300 in 2 Days, only.

Nasdaq 100 opens at 2355 make a weekly low at 2285 and closed at 2347, I would say Nasdaq 100 is less bearish compare to DJIA, prefer to trade long when market come to 2335 region.

Related: DJIA and Nasdaq 21-Feb-2011


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Cheers and welcome on board, Traders!
Ayumi

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