Monday, July 16, 2012

DJIA and Nasdaq 100

DJIA and Nasdaq 100 for the week starting 16-Jul-2012

It was a reporting season, and last week DJIA suffered 4 consecutive losing days from weekly open 12772.02 pts to low 12492.33 pts, the longest losing streak since May 2012.

Last Friday DJIA rebounded and gain 203.82 pts result a positive close for the week at 12777.09 pts.

Market was led by JPMorgan Q2 earnings $1.21 per share on revenue of @22.9 billion vs forecast of 70 cents per share on revenue of @21.8 billion and Producer Price up 0.1%, above expectation of -0.3%.

From technical chart we reckon this bullish momentum to continue on Monday and DJIA shall find its strong support at 12680 and return to resistance 12830 pts.

YM (currently trading at 12699 pts )
Daily chart reflected that market has rallied up to resistance 12760 region and shall trade sideways bias up to test this resistance.  Strong support 12630 pts.

Should YM failed to break this resistance 12760 and fall below 12630, this shall form its new resistance and we shall expect another series of losing streak.

The downside target is 12530, then 12430 before testing last June low 12385.

Nasdaq 100

Nasdaq 100 chart is slightly bearish compare to Dow as Nasdaq 100 is currently trading near its EMA50 on 4 Hour chart, it is resisted around 2582 pts.

From Daily candle we expect Nasdaq 100 to post another bullish candle today and close near 2595 pts to form divergence in intraday 30 mins chart before coming down to 2560 pts.


Federal Reserve Chairman Ben Bernanke will testify before Congress on July 17 / 18, to give his semi- annual monetary policy testimony. pay attention to your position and beware of fundamental news as it will lead the next market direction.

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