Good day everyone
DJIA
Like Sarah mentioned on Thursday's forecast, DJIA is trading in range and prone to test R1 11500 region, and if market manage to break above 11500, we are going to see R2 11700 level soon.
This happen due to Euro Zone debt crisis that is worsening, how many times are we are hearing it? Monies are moving back into US equity market as safe heaven.
Market has been rising for the past 5 days (1 whole week), last Friday, the Dow finished within 25 points of its high for the day and closed the week up 4.7 percent.
During the weekend we read political pressures on US – White house tax plans like “Buffet Tax” on millionaires, measures to “rescue” Euro-zone debt crisis, and we foresee the coming trading days will be trading based on political issues rather than economic events.
Technical Forecast
Market is prone to trading down, technically after rising for continuous 4-5 days, market is prone to a 1/3 correction. If market reaches higher above 11550, then we shall see the Dow trading towards R2 11700; if market were resisted at current high without moving higher, then we shall see a retracement back to 11350 – 11300 soon, once market traded below 11300, we expect market to test S2 11180.
New traders are advised to stay out and observe how market reflects to news.
NASDAQ 100
Similar to Dow, we forecast a correction to happen after 5 days winning streak, market prone to be supported at S1 2250 – 2240. Strong Support S2 2210.
Once market recovered from the correction, we may see NASDAQ 100 trading back to 2315 and next target 2370.
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