Another Volatile Week Ahead...
The Dow made marginally positive week last week after 4 straight negative weeks, closing up by 42 points on a week on week basis.
Even though economic data kept on disappointing and the situation in Spain and Greece continue to worry, the US market held its ground on short term support levels and didn't make yet another negative week. Indeed, no bear trends go straight down and such bargain hunting around short term support levels is to be expected.
The Dow is currently finding support around its weekly 30MA (30WMA) as well as its daily 200MA, both are significant support levels. So, is this the end of this intermediate correction?
Well, if this is the intermediate correction that I have been talking about, then we should be looking forward to a testing of the weekly 50MA (50WMA) at about 11,450. If a visit to the 11,450 level is in the books, then we would probably see a significant pull up (bull trap) to the daily 30MA level before going down to that level. The week ahead may again be quite volatile as the FOMC makes its announcement on Wednesday and GDP coming on Friday (see Stock Market Calendar).
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Even though economic data kept on disappointing and the situation in Spain and Greece continue to worry, the US market held its ground on short term support levels and didn't make yet another negative week. Indeed, no bear trends go straight down and such bargain hunting around short term support levels is to be expected.
The Dow is currently finding support around its weekly 30MA (30WMA) as well as its daily 200MA, both are significant support levels. So, is this the end of this intermediate correction?
Well, if this is the intermediate correction that I have been talking about, then we should be looking forward to a testing of the weekly 50MA (50WMA) at about 11,450. If a visit to the 11,450 level is in the books, then we would probably see a significant pull up (bull trap) to the daily 30MA level before going down to that level. The week ahead may again be quite volatile as the FOMC makes its announcement on Wednesday and GDP coming on Friday (see Stock Market Calendar).
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
posted by Jason Ng at 8:24 PM
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