It is the 1st trading day of Q2 in 2009. It is also an April Fool day. Do you think Dow Jones or the US stock market has hit the bottom? Is it ready to resume the recovery? My answer is Yes, It has hit bottom, but I think it is still too early to say the market will start its recovery.
I would say we need to observe for one more quarter to see the effect of stimulus package before we can decide if the market will resume its bull run to recover or not.
Sideway Market is Anticipated on Dow Jones
I was looking at 7,500 as the key Dow Jones resistance in my last post, the market was so strong that it broke this resistance. However, it stopped at 7,900 which was the 2nd level resistance. That’s why the market is now pulling back.
I will be seeing the key immediate support to be 20d and 50d moving average levels. If this supports hold, it will form a higher low which we might see more upside higher thatn 7,900. If this MA support does not hold, then there is a high likelihood that the market may retrace back to the 6.500 level and swinging between, 6,500 and 7,900 levels.
Anyway, while I am writing this post. I saw the US market and Dow Jones begin with a drop on the first trading of Q2 2009. But the market has started to cover back the loss now. I will enjoy my a day today to celebrate April Fool day and make myself a total fool to relax. No trading at all. Let’s see what Dow Jones will close high or low!
Dow Jones Has Hit Bottom
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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