Volatile Week Ahead...
What a week last week! Even though the Dow traded in a more sensible fashion, the Nasdaq composite and the S&P500 continued to stretch their winnings, ending in extremely weak volume and toppy signals last Friday.
Looking at the signals formed by the Nasdaq composite and the S&P500, I have no doubt that this week is going to be pullback week. Even though the Dow moved in a much more sensible fashion so far, it will no doubt be affected by the pullback too. However, if a pullback happens, the Dow is probably going to move down much lesser than the S&P500 and the Nasdaq composite will. In fact, I see short term support for the Dow at about 10,400.
Throwing oil into fire is the fact that this week is Quadruple Witching week. The level of volatility that is going to be in the market this week will no doubt act as a catalyst for the pullback.
For now, the Dow remains in all out bull trend.
Looking at the signals formed by the Nasdaq composite and the S&P500, I have no doubt that this week is going to be pullback week. Even though the Dow moved in a much more sensible fashion so far, it will no doubt be affected by the pullback too. However, if a pullback happens, the Dow is probably going to move down much lesser than the S&P500 and the Nasdaq composite will. In fact, I see short term support for the Dow at about 10,400.
Throwing oil into fire is the fact that this week is Quadruple Witching week. The level of volatility that is going to be in the market this week will no doubt act as a catalyst for the pullback.
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 7:47 PM
0 Comments:
Post a Comment
<< Home