DJIA and Nasdaq 100

Hurricane Irene battered New York with heavy winds and driving rain on Sunday, knocking out power for some and flooding some of lower Manhattan's deserted streets, including in the Wall Street district.

The NYSE and broader U.S. marketplace are mostly automated, running quietly out of powerful data centers in New Jersey and elsewhere. The New York Mercantile Exchange (NYMEX), a few blocks from the NYSE, also plans at this time to open on Monday. Electronic trading is expected to function normally on Monday. But without full staffing, volume will take a hit.

DJIA

DJIA recovered on Friday after Federal Reserve Chairman Ben Bernanke ensured more tools to stimulate economy, Wall Street has the first rising week after 4 weeks of losses.

From the technical chart, DJIA has traded to EMA50 line at the 4 Hour chart, our view is neutral.

DJIA may have seen the 1/3 retracement and need to consolidate between the flag 11550 – 10600.
I forecast DJIA to trade in range this week between 11550 – 10950 (600 points) bias up.

For those who have been following our thread, we are looking for a potential trapezium to form which might happen in September. I prefer DJIA to protrude above 11550 and recovered to 11800 = EMA200 lines in Daily Chart = 50% Fibonacci Retracement, had a big hit, and resume the grand cycle. Beware that the development shall be in line with the US monetary policy, and be patient.

Therefore, for the week’s trade plan, aggressive trader can pick long at support 10950 level. Intraday Short: aim to short if EMA50 (4H) shows rejection.

Strong Resistance 11800
Resistance 11550
Support 10950
Strong Support 10600


NASDAQ 100

Forecast market to trade in consolidation between 2220 – 2085, bias up. Nasdaq 100 may have a quiet trading week, if EMA50 (4H) shows rejection, short and exit at support 2085. However, for the week, aim for long opportunity near support 2085 level and target exit 2215.

We forecast Nasdaq 100 to go strong until 2320 level slowly, steadily in 2 weeks’ time.

Strong Resistance 2320
Resistance 2220
Support 2085
Strong Support 2035