DJIA and Nasdaq 100

DJIA on 9th May 2011

Dow has been moving down last week from 12850 region and corrected to 12525.35 low point.
Last Friday NFP* figure release lifted up DJIA by +170 points from 12580 to 12750, however, the selling pressure is still strong and finally DJIA closed at 12650.

* NFP = Non Farm Payroll
Change in the number of employed people during the previous month, excluding the farming industry;
Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity.

From bigger time frame (Daily Chart) DJIA has just completed a 1/3 retracement and set to go higher towards 13000 before June.
From smaller time frame (4 hour chart) DJIA has plunge for last 4 days and finally on Friday, boosted by job figure, DJIA formed a reversal to go up however the selling pressure is still strong that pushes the index to close lower.
Drill down to 30 mins chart we shall see a nice support at 12600.

Monday, we suspect DJIA to continue a series of swing before it decides where it is heading to.
My preference is to Long DJIA when it comes to key support 12588-12600 again.

Intraday trade: YM Long at 12560, SL 12520, TG 12700.


Nasdaq 100

Resistance 2420
Resistance 2410
Support 2375
Support 2365

As per our forecast last week, Nasdaq 100 has pulled back to strong support 2392, futhermore, it broken this support and made a low of 2367 on Thursday.
The consolidation is going to continue this week in big range, we suggest to stay out, however, to play safe, today we can enter with Fibo range:
Long @ 2369 SL 2364 TG 2388.
Short @ 2405 SL 2410 TG 2385.
Position must be closed by End of Day (EOD).