DJIA and Nasdaq 100

For the week starting 22-Oct-2012

World stocks, Commodity and Crude Oil fell on Friday upon fresh global economic concerns, lack of progress on Spanish bailout request.

Gold fell from $1742 region to $1720.80, $20 (more than 1 percent) – the biggest one-day slide in more than 3 months.

DJIA fell from 13550 region to 13343.51 pts., -205.43 pts. (more than 1.5 percent) – erased most of the week’s gains as the earnings from large multinationals underscored.

CBOE Volatility Index (VIX) jumped 13.5 percent to 17.06, highest level since 5th Sep 2012.

Technical forecast

DJIA
Weekly candlestick pattern:
bearish, with confirmation.

Daily candlestick pattern:
bearish

Intraday:
market is approaching the critical support 13300-350 pts., if market closed below 13300, then we shall see the bearish sentiment continue.

After Friday (19/10/2012) plunge, stochastic oscillator, is showing strong oversold and market is likely to come up, take a breath above red blue sea, then continue sinking towards 13200 pts.

This short term up move, might face resistance at 13400, or 13450 pts.

Market is unlikely to revisit 13500 level anymore unless there’re rumors to bring it up.

My trading opinion:
Hunt Short 13400. SL 13450.  TG 13200.

Cheers
Ayumi