Housing Week Ahead...
Last week was a breakout week for the Dow as it did a decisive break from the 9500 resistance zone, gaining a total of 215 points and closing the week at 9820 points. That breakout also helped me take a 53% profit on my CNX position.
This week is housing week with a ton of housing numbers being released all week long (see Stock Market Calendar). Past numbers has pointed towards a recovering housing market after all the toxicity has been sunk through the economic crisis. No doubt the numbers are going to continue pointing towards a recovery in the housing market as it is clearly in the recovery phase now. It is because of its predictability that I doubt it is going to stop the Dow from testing the 9600 level. Such a testing is extremely important in establishing that area as a support region from the resistance region it used to be. Especially in this weak bull market, frequent testing of immediate short term resistance levels is to be expected.
For now, the Dow remains in all out bull trend.
This week is housing week with a ton of housing numbers being released all week long (see Stock Market Calendar). Past numbers has pointed towards a recovering housing market after all the toxicity has been sunk through the economic crisis. No doubt the numbers are going to continue pointing towards a recovery in the housing market as it is clearly in the recovery phase now. It is because of its predictability that I doubt it is going to stop the Dow from testing the 9600 level. Such a testing is extremely important in establishing that area as a support region from the resistance region it used to be. Especially in this weak bull market, frequent testing of immediate short term resistance levels is to be expected.
For now, the Dow remains in all out bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 5:18 PM
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