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.
Let’s take a closer look now!
Ben Bernanke has just said that recession could end in 2009. Do you think that will send some strong signal for the market to rebound on Monday??? The market indeed has managed to close with the best gaining week last week since November. Do you think the market will resume this momentum to drive higher?
Let’s take a look now!
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.
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.
I thought Dow Jones would not close higher than 9,000 points last Friday. I was wrong, the Dow Jones Industrial Average managed to push to a high of 9,065 and closed at 9,034 level. That seems to be a good news to cheer for on the 1st trading day of 2009.
But is Dow Jones Ready for a Bull Run?
After posting about the Dow Jones Industrial average daily and weekly trend last week, I was following the Dow Jones market very closely last week. I thought there would be some bearish sentiment developing and the market might trend lower due to the stalling of the auto bail out plan.
Finally, white house utilized the financial rescue package to give a big hand to the automakers. However, you might be wondering, how come the market did not rally up and cheer after receiving such a news. The market was almost staying flat for the last one week.
Let’s do a quick review now! And see if there would be any year end rally or not.
I mentioned last week that a correction or retracement is inevitable on US stock market and Dow Jones Industrial Average. There was just a slight retracement observed in the last 5 days and following very closely to the 50d MA.
If we follow Alexandra Elder’s recommendation, we must always look at the stock market chart on both daily and weekly charts.
Let’s look at the US Dow Jones Industrial Average on the daily and weekly chart now!
We saw last week that Dow Jones Industrial Average fell to new low and I was predicting that DJ will touch the 2002 low at 7,100. However, it did not touch exactly on 2002 low but it rebounded with a weekly gain to cheer for the Thanksgiving.
S&P and Nasdaq also have similar stock market trends. Where to you think the US stock market will head to next?
Let’s take a closer look at Dow Jones, S&P500 and Nasdaq now!
S&P500 has hit the 2002 low, but Dow Jones is still about 300+ points away from the 7,100 lowest level in 2002. Do you think Dow Jones will continue to dive to touch the 7,100?
