I am still hunting for shorting opportunity in DJIA, however, I will abandon the plan if DJIA can close this week above 12875.
This way DJIA would have posted a very bullish sign on Monthly Chart, and will continue to rally towards new high 13000, or May-2008 high 13130 region.
However, the inflationary figures, job market, trade deficit, budget, debt default... these fundamentals doesn't really suggest a long term uptrend... to me this simply doesn't synchronize with the chart, yet.
I am worried that the imminent crash will hurt many families... the market will turn out to be in a very bad shape... :(
Short term trading, stay out.
From Daily Chart, 12753 (July-7) is the left top, and 12750 (last thursday July-21) is the right top.
I reckon market to make a new high this week, but to be resisted below 12875 region.
However, if market continue to be resisted below 12750, upon breaking below 12520 temporary support, DJIA will go south towards strong support 12300 pretty fast.
Watching the intraday chart for opportunity and confirmation.
Nasdaq 100
Technical chart suggest strong bull in Nasdaq 100, it has broken above all highs... formed a series of higher lows... While general rule says, upon breaking the all time high, we can enter long, but I would not do so in current market condition...
"The market still has a high degree of skepticism in it," said Nick Kalivas, an analyst at MF Global in Chicago, summing up the earnings season so far.
This week is also a big week for economic data, since we have missed the train to the moon, I suggest we stay out from Nasdaq 100 but watch carefully when the opportunity resurface.
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