It has been quite a while since I last posted about the US stock market trends on the US. Though there were many people suggested there might be a bull run after President Obama took office, but I still think that there will be a prolonged moment of sideway market before investor gain their confidence back in the stock market.
What is the latest hot news lately? Well, president Obama is now fighting hard to obtain the backing from the Senate over the stimulus package. You can gain a quite insights on this by looking at Yahoo Finance, MSN Money or Google Finance. That’s how I usually try to see what is the latest financial fundamental news that will affect the market.
At the same times, there are lots of news on company lay off as well, that’s the sign that many company is under big pressure to meet this bottom line. Thing is not doing well.
So, now, how does the market react so far? Dow Jones has been swung in the sideway market for the last 2 months. Let’s take a look at it.
Dow Jones Sideway Market Trends
Dow Jones has swung into a sideway market since Nov. I am now lookinga the resistance and support to be 9,000 and 7,900 respectively. As long as the market is up and down within this region, I believe there will not be any further fall. However, if Dow Jones breaks the 7,900, there is a likelihood for it to fall to the 2002 low near 7,100 level.
When do you think this will happen? Well, I believe there is more downside in the market in next 2 months till the next quarterly earning starts. I do not think the market will reverse to the up trend now. If you like to do bottom fishing, I think it is still too early.
Dow Jones Industrial Average Sideway 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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