DJIA and Nasdaq 100

Image Source: Reuters

DJIA

US market was affected when S&P downgrade 9 euro countries.

DJIA tumbled and had a straight fall of more than 150 points to reach 12311 pts. within the first 2 trading hours. But closed at 12422 pts. (-47 pts.) last Friday.

Market still identifies the support level 12300 -330 strong and DJIA record a weekly gain of 62 pts. (0.5%).
This week is the Financial Report week; many big organizations is announcing their earnings, other than focus on Euro-Zone debt crisis, earnings from Bank of America, Goldman Sachs, General Electric, Intel, Microsoft, Google, Apple will create volatility for the US market.

Technical Chart:
Weekly candle suggest that US market might have another choppy week ahead, with bullish bias towards higher high 12600 pts., 12730 pts.

Support at 12300 level. This is a crucial level if DJIA traded below support and close the weekly candle below 12250, I will abandon long view.

Intraday 30 minutes chart: 12395 is the BKO level and we can hunt for long opportunity as long as DJIA do not cross below 12330, ultimate stop 12300, Target exit 12500.

Monday is US bank holiday; US banks will be closed in observance of Martin Luther King Day.

YM
Monday market is likely to be depressed.

Market opened at 12377 and from 30 minutes intraday chart, if market continues to be resisted below 12380, we will observe the formation of divergence (stochastic vs. price) and YM is going to trade down to 1st target 12330 pts.

We are likely to hunt for long as long as YM didn’t trade below intermediate support level 12280 pts., ultimate stop 12250 pts.

Target exit at immediate resistance 12440 – 12450.

Meaning to say, early of week we hunt for shorting opportunity, and mid-week we hunt for long opportunity in line with the expectation of positive earnings from Intel, Microsoft (Thursday), and Google (Friday).

Nasdaq 100

Market reaches our target level and continue the uptrend.
Support 2358-2360, resistance 2385, next target 2400.

NQ
Similar to YM, NQ will be depressed on Monday and it is likely to trade back down to support level 2358, hunt for long opportunity during mid-week as long as NQ didn’t trade below 2348-2350, target exit 2385, next target 2400.