Sunday, July 10, 2011

DJIA and Nasdaq 100


Hohoho, like what we have forecasted last week, the triple crossing in Daily Chart indicate strong bull, DJIA rallied all the way to 12700-800 region.

Like what we mentioned on last Monday, the bullish strength shall cease at 12700.
Indeed, DJIA faced resistance at 12700, formed a black candle on Friday in line with soft jobs.

Next week is the start of the reporting season :-)

DJIA has travelled so far from 11900 to current 12700, it is still possible that Dow to take out 12780 resistance, and rally towards 12875. Watch: the earnings report from ALCOA, and Google.

On the economic data front, pay attention to:
Thursday 14-Jul: PPI and Retail Sales for June;
Friday 15-Jul: Consumer Price Index for June.

If the report is below market expectation, DJIA should find support of the week at 12450.

Monday: stay out and wait for reversal confirmation.


Bullish sentiment shall continue, support at 2380.
Resistance 2420 (triple top on weekly chart)

2 scenarios:
  1. If Nasdaq 100 can break this triple top resistance, next target is 2440, 2480.
  2. If Nasdaq 100 starts to consolidate this week, it shall hover between temporary support 2380 - 2420, and I expect a healthy correction to 2350 before it continue to go up.

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