US elected Obama as the 44th US president, however, the market did not cheer about it instead, it dive by more than 400+ points on Dow Jones Industrial Average. Dow Jones has enjoyed quite a good rally for a week before the election which many people believe to the election rally.
It is now time to focus back to the economic. US and the world is still facing one of the toughest time since the great depression. There will definitely need lots of work to be done before we can regain all the investor confidence into the market. Otherwise, I do believe that the market will remain weak for the next 1 year at least. That’s my thought.
Let’s take a look at the US Dow Jones Industrial Average stock market trends now.
Dow Jones Industrial Average Stock Market Trends
DJIA has hit a ceiling of we called resistance now. The resistance is between 9,637 – 9,790 level. Looking at the index chart, I believe the market has gone into either sideway market or maybe a resumption of the down trend.
If it is a sideway market, the market might test the support level near 8,173 level.
All the indicators are showing weakness and there correction is definitely around the corner now. If you like to long, it is not a good time. Otherwise, it might be a good time to short. I have shorted a position yesterday on McDonald & Lorillard.
Dow Jones Industrial Average to Test 2002 Low
Another scenario is that the market can resume its down trend to form another lower low. DJIA has not hit the 2002 low yet like what I have been cautioning before. The time may come and we may see the DJIA to hit the 7,097 level.
Dow Jones Industrial Average Stock Market Trends
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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