Last week, I was seeing Nasdaq leading the US stock market and there is a possibility that Nasdaq can lead the reversal on Dow Jones & S&P500. I was a bit uncertain about Dow Jones and S&P500 stock market trends because I saw a possible ascending triangle formation on Dow Jones.
However, the ascending triangle did not realized. Instead, the market crashed and broke the support on the upward ascending triangle. That showed that the market is still not accepting the bull to return.
Let’s take a look at what is the US stock market trends this week!
Dow Jones Weekly Stock Market Trends
Dow Jones failed the ascending triangle last week. That is not a good signal for bull trader. Instead, this can signal a continue sideway movement on Dow Jones or there is a possibility for Dow Jones to dive downward because we are seeing a bearish divergence on Dow Jones volume. The market participation is getting thinner and thinner.
At this point of time, all indicators are still showing some uncertainty. It is at the junction of 50:50 tug of war between the bear and bull.
Looking at the price movement alone, a lower low is in the formation and it is critical to watch immediate support at 10,827 level. Breaking this level will be extremely bearish and immediate resistance will be around 11.,735.
I will think of 2 strategy to trade on Dow Jones. First, short at resistance near 11,725 as sideway trading. Second, short at support breakdown of 10,827 as immediate trend is still a down.
US Dow Jones Stock Market Trend Aug 25 2008
S&P 500 Weekly Stock Market Trends
S&P 500 is having almost identical pattern and movement as the Dow Jones. We also saw that S&P 500 broke the consolidation pattern of an upward triangle wedge pattern. Volume is showing bearish divergence similar to the Dow Jones.
Immediate support is 1,200 and immediate resistance is 1,313. S&P 500 is like to swing between this upper ceiling and lower flooring. You can apply the same strategy I mentioned above to trade S&P500. First is to short at resistance and second is to short at break down of support.
US S&P500 Stock Market Trend Aug 25 2008
Nasdaq Weekly Stock Market Trends
Nasdaq has been enjoying its bullish uptrend in the past 1 month. However, it is now hitting the 200d MA which is a strong resistance to break. Overall market sentiment and economic condition do not have any good news to give Nasdaq a boost.
Nasdaq is not trading in the zone between the 200d MA and 50d MA. It will be safer bet to short if it breaks downward at the 50d MA support.
US Nasdaq Stock Market Trend Aug 25 2008
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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