I saw Doji formation on Dow Jones last week, plus the 200d MA resistance, that was the first bearish signal for me that market correction is coming. 4 -5 trading days has passed and we are still seeing the Doji like formation almost everyday.
This shows that the market is still very undecisive now. It might be a tug of war between the bull and the bear this week.
I was looking at Dow Jones hitting the 200d moving average (MA) resistance. Indeed, the index was stopped right at the 200d MA resistance and a doji was formed. This suggests Bearish Correction is Coming!
I posted yesterday Dow Jones will be resisted by the 200d MA. Indeed, you can see that the high of Dow Jones hit on the 200d MA and closed lower. Again, this demonstrate the power of technical analysis as it helped us to know where is the possible ceiling to take profit.
Dow Jones opened higher at the start of the week with a big cheer to the market to move higher. Dow Jones now broke the resistance of the consolidation phase and this may suggest to have one more round of bull run again.
However, a tough 200d moving average is just around the corner!
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.
However, there is some bearish sign appearing on the weekly. Let’s take a look now!
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.
