DJIA : Risk of a correction this week.

Earnings are coming in thick and fast and are less than impressive so far, placing the Dow at some risk of a pullback to 12,150 or so and possibly down to nearer 11,850
Trade View
• Momentum is decreasing, the market is struggling but the Dow can keep the trend intact for a while longer given any dip is met by fresh buyers – as has been the case for several quarters now.
• In terms of technical levels, use 12,116 to 12,150 as the first decent support. If it holds, fine, then a new high or at least a retest of 12,500 should be in store.
• However a breakdown below 12,100 should result in a pullback to 11,850 or near, so the week ahead does have more risk attached than seen since the Japan tragedy.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: