DJIA and Nasdaq 100

DJIA and Nasdaq 100 Update for Mon 16 Apr 2012

DJIA

DJIA plunged last Monday & Tuesday on renewed Euro Zone debt crisis, it went down to test 12750 main support, formed a low around 12715 and rebounded to 12986 while investor hope another round of easing from Federal Reserves.

Market has suffered the worst 2nd week in this year, and fallen way below 13000, and the market condition has shifted from sideway bearish, to bearish.

We at Ayumi the Novice Trader viewed last Thursday and Friday as technical correction and market shall capped below 13000.

Current support 12700 is still holding up the market and therefore we reckon the technical correction to continue until Tuesday/Wednesday before market decides its next move.

If market is not able to break above 13000, we expect market to extend its losses to 12500; this is the 50% Fibo Retracement level. Currently 13000 act as a strong resistance which is a difficult level to break if DJIA wants to turn to bullish again.

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NASDAQ 100

Market condition: sideway bearish
Weekly chart: NASDAQ 100 has formed the first bearish candle, and there will be more to come.

Support 2730 has turned into resistance now.

Market will trade sideway between 2700 – 2730, and may revisit 2685, once market break below 2685, we expect market to turn down to WTP 2630 in 2-3 weeks time.