Tuesday, August 13, 2013

DJIA and Nasdaq 100

for the week starting 12-Aug-2013

Since the start of August 2013, DJIA has been trading in narrow range.
Last week we finally see some range changes and on weekly chart, there is a bearish candlestick pattern.

Market has been reacting to news, economic data releases, and we are paying a lot of attention for Sep-Taper month.

Taper, or not taper?

With better than forecast economy data, Sep-taper is coming.
However, Federal Reserves convinced us that tapering doesn't mean tightening.

Let's see, i really expect some bearish sentiments...

At the other side, we take a quick look at USDX, it has fallen to 81.30, close to previous low 80.60, which I believe a technical support should happen around this level to lift USDX back to neutral level around 82.20 - 82.90.

Till then DJIA shall begin its correction back to 15,180 pts.

This week I forecast market to trade sideways bias down to test 15,260 pts, then to recover to 15,450 pts.

Looking forward to a wave formation.


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