Stocks accelerated their selloff to finish near session lows in light, choppy trading last Friday (Aug 19, 2011) as investors were reluctant to remain in the market ahead of a weekend, amid worries over a global recession in addition to the ongoing euro zone jitters.
All three major averages logged their biggest four-week decline since Mar. 2009, with the S&P tumbling almost 16 percent during the period.
The Dow Jones Industrial Average shed 172.93 points, or 1.57 percent, to finish at 10,817.65.
Source: Bloomberg
DJIA
I quite like the forecast last week :)
I expect Dow to extend the fall on Monday and Tuesday until next target 10460.
Upon reaching this target, I have a feeling that DJIA, although they are in bad shape now, may possibly bounce off from the low. Fed chairman is scheduled to speak on Aug 26. Who knows what the policy maker will decide?
Strong Resistance: 11460 - 11530
Current support: 10600
Next target: 10460.
If market were strongly supported at 10600 region and cannot break down, expect Dow to pull up to the strong resistance 11460. But do not rush into market because if a double bottom is formed, market may rebound fifty percent to 11835-12000!
My trade plan for Monday is to short at initial shadow, and close by EOD.
On our YM chart, Dow is trading at 10820, and I am going to short at 10920 SL 11020 TG 11620.
Stay tuned to our forum for more updates!
http://www.pwforex.com/forum/viewforum.php?f=8
Nasdaq 100
Goldman now expects gross domestic product growth of 1.0 percent in the third quarter and 1.5 percent in the fourth — both down from 2.0 percent previously.
"From already quite low growth rates, it appears that the U.S. economy is losing further momentum," Goldman said.
Among the four major US Indices, Nasdaq 100 shed the most in 1 week.
Gap down, trading down.
Source: CNBC
It is very difficult to trade now and I suggest to stay out.
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