Here are some of the business news today… I would think the BankUnited failure would have the biggest impact on the market. However, it seems that the US market is still unmoved by some of this bad news, all the investors and traders are already adapted to a series of bad news since the financial meltdown last year.
- Treasury throws GMAC a new $7.5 billion lifeline
- BankUnited Fails, Will Cost FDIC $4.9 BILLION
- AIG’s Liddy to depart; company to split chair, CEO
Consolidation on Dow Jones Daily Chart
If I am looking at the Dow Jones chart now, I am seeing the Dow Jones in now trading in a rectangular consolidation stage. The uptrend is still not broken yet so far, and therefore the bull run still remains intact.
It is important to watch the resistance and support of this consolidation and that will be a trigger to know where the market will move next. Resistance is near 8,591 while Support is around 8,221. There is chances of moving up or moving down.
Dow Jones Industrial Average Trends
Price & Volume Divergence on Dow Jones Weekly Chart
Though the bull trend seem to remain intact on the daily chart, however, there is a cautious notes I like to share with everyone as I am seeing price and volume divergence pattern on the Dow Jones weekly chart. Plus, the stochastics are in the overbought region now.
Dow Jones Industrial Average Weekly Chart
Likely Correction on Dow Jones Industrial Average
Though the Dow Jones seem to stand pretty still and move sideway in a consolidation, considering both the daily and weekly Dow Jones chart, there is some evidence that the Dow Jones may have its correction soon.
If you are short term trader, you can still try to reap some benefit in the daily fluctuation. Long at support and Short at resistance is your strategy to use. If you are a long term investor, think twice and I will encourage you to hold your bullet and wait for the price to dive first before going into the market.
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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