I have not posted US Dow Jones stock market trend for quite a long while since June. And I am sure you know that US Dow Jones has been going upwards in the past 4 months as the world economy is recovering.
Is Dow Jones Upwards Momemtum Sustainable?
I saw Doji formation on Dow Jones last week, plus the 200d MA resistance, that was the first bearish signal for me that market correction is coming. 4 -5 trading days has passed and we are still seeing the Doji like formation almost everyday.
This shows that the market is still very undecisive now. It might be a tug of war between the bull and the bear this week.
I was looking at Dow Jones hitting the 200d moving average (MA) resistance. Indeed, the index was stopped right at the 200d MA resistance and a doji was formed. This suggests Bearish Correction is Coming!
Apple has scheduled to make some big announcement next week. Maybe some update on the next generation iPhone, or maybe some update to the possible netbook, or its Mac OS Snow Leopard.
At this junction, let’s look at the analysis of Apple now!
I posted yesterday Dow Jones will be resisted by the 200d MA. Indeed, you can see that the high of Dow Jones hit on the 200d MA and closed lower. Again, this demonstrate the power of technical analysis as it helped us to know where is the possible ceiling to take profit.
Dow Jones opened higher at the start of the week with a big cheer to the market to move higher. Dow Jones now broke the resistance of the consolidation phase and this may suggest to have one more round of bull run again.
However, a tough 200d moving average is just around the corner!
General Motors finally file for Chapter 11 Bankruptcy. General Motors’s bankruptcy filing is the fourth-largest in U.S. history and the largest for an industrial company.
However, interestingly, Dow Jones is gaining big news while this news is annouced.
I was looking at Dow Jones doing some consolidation last week and I have also warned of possible weakness in the US stock market. S&P500 is also showing some weakness in the weekly chart now.
Let’s watch the video now!
