Korean Concerns Continue...
The Dow continued to trade sideways along the 11,000 points support level as investors continue to await a resolution to the Korean issue.
Fundamentals
The US market continue to trade with a pessimistic note today even though all major economic data today turned in better than expected. Obviously investors are cautious of the possible effects of a melt-down in the Korean crisis which could turn world markets negative overnight. However, we can be sure that if the Korean leaders come to a peaceful resolution or that the crisis doesn't seem to have any legs, all these better than expected economic data will catch on very quickly and spur another strong leg up. For now, the world hangs on the balance.
Technicals
The Dow broke below the daily 50MA support level today, holding just above the 11,000 points psychological support level. The only positive thing about today's trading pattern is the fact that it traded well within yesterday's trading range. However, from this point forward, any kind of breakout, whether to upside or downside, can be expected to have significant leg. Immediate support level is now the daily 200MA at about 10630 points.
For now, the Dow remains in a short term neutral trend, intermediate bull trend within a primary bull trend.
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Fundamentals
The US market continue to trade with a pessimistic note today even though all major economic data today turned in better than expected. Obviously investors are cautious of the possible effects of a melt-down in the Korean crisis which could turn world markets negative overnight. However, we can be sure that if the Korean leaders come to a peaceful resolution or that the crisis doesn't seem to have any legs, all these better than expected economic data will catch on very quickly and spur another strong leg up. For now, the world hangs on the balance.
Technicals
The Dow broke below the daily 50MA support level today, holding just above the 11,000 points psychological support level. The only positive thing about today's trading pattern is the fact that it traded well within yesterday's trading range. However, from this point forward, any kind of breakout, whether to upside or downside, can be expected to have significant leg. Immediate support level is now the daily 200MA at about 10630 points.
For now, the Dow remains in a short term neutral trend, intermediate bull trend within a primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 11:21 PM
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