DJIA and Nasdaq 100

for Week Starting 21-Jan-2013


University of Michigan preliminary index of Consumer Sentiment dropped from 72.9 to 71.3, lowest since December 2011.  Economy, employment  is growing at a tepid rate and consumer sentiment is low, market is positive after announcement of unemployment benefit – first time claim of unemployment benefit fall to a 5 year low.

DJIA

DJIA has risen to a 5 year high after the US government reported a sharp rise in number of new homes being built last month, and to the expectation of raising debt ceiling.

From Monthly Chart – so far January candle is a full bodied white candle and it possesses potential to rise higher to close near 13750 pts. for the month.

We generally expect US to raise debt ceiling and equities will continue to rise until the voting completed.

Weekly Candle – bullish
Daily Candle – bullish, capped below 13678 pts.
Intraday: Identified Support near 13,580 pts. and market is likely to continue rising above 13,700 towards 13,750 pts.

Once market has taken out 13750 then it might continue heading north towards 14k, and then 14120 pts.  Otherwise we expect some consolidation to take place before another significant trend is formed.


Nasdaq 100

Market is trading to test support near EMA50 (4H), we observed market rebounded almost every time it tested EMA50.  However, from 30 minutes and 60 minutes time frame, market was trading sideways bias down in the past week but managed to break up on last 4 hours.

We reckon market to continue trading upward on Monday, target limit to 2747 pts., support 2736 pts.

Cheers
Ayumi