DJIA and Nasdaq 100

DJIA and Nasdaq 100 for the week starting 7th May 2012

DJIA 

DJIA was trading up all the way to 13338 early of last week, and as per what we quoted - overhead resistance near 13300 is strong, in line with negative economic announcements and euro zone debt woes, DJIA traded down to 13050- a strong support level.

This is a crucial level to watch, if DJIA is not able to sustain above 13050, further correction down to 12850 is within reach for this week.

However, we can only expect some major announcements on Friday, so I forecasts DJIA to trade sideways at the current level, 13000 may be up to 13180 level from Monday to Wednesday.

My preference is still hunting for long, personally, I will observe when DJIA traded down to test 13000 support level, and might want to long if market shows support here, provided that DJIA never trade below 12980, if this happen (trade below 12980), it proves more downside correction is expected and I will change my short term view from Long - to Short and expect to close the short position at 12850 level.


NASDAQ 100

NASDAQ 100 posted a bearish weekly candle. This week, bearish.

R2: 2695-2700
R1: 2642
S1: 2630
S2: 2595-2600

Monday hunt for shorting opportunity using initial shadow at R1 level 2642, SL 2650, and aim to exit at 2610-2630.