Knocking At The All Time High Door...
Despite all kinds of mixed economic data, the Dow continued to inch towards the all time high resistance level of 14000 points today, ending up 34.79 points to close at 13912.94 points. Again, this was done on ever decreasing volume and still in a grossly short term overbought region. All indications suggests that the Dow is not going to be able to break the 14000 level anytime soon and may make a significant pullback upon reaching that level. Even though a pullback is to be expected, the overall trend should remain bullish as investors look forward to more rate cuts amidst the torrents of lousy economic data.
posted by Jason Ng at 6:27 PM
2 Comments:
What do you think is the probability of another rate cut in Oct? I think it would be a low one given that the Dow has gained back (by this month) almost all the losses that it has incurred in Aug. Resistance is at the psychological 14,000.
SGX Securities
Hi AC,
Thank you for leaving a comment. :)
Well, I personally think that chances are good that we could have another rate cut coming up, probably by a quarter basis point, as the data coming in so far still suggests a higher risk of recession than inflation.
The 14000 level is going to be a tricky one and one which I do not think would be beaten this time round.
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