Well, it has been a week plus since my last post on Dow Jones Industrial Average and S&P500. My last post was the Dow Jones Index and S&P500 broke the 61.8% Fibonacci level. It was extremely bearish and the market was like a snowball rolling downward.
Finally, the market has calmed down a bit and it is hovering sideway for the past 1 week, still having high volatility though.
I have just observed some special formation on Dow Jones Industrial Average, S&P500 and Nasdaq now!
We have seen that the Dow Jones broke the 61.8% Fibonacci Support 2 days ago. The market seems to continue to dive, do you think the Fibonacci theory will hold true that the US markets can indeed continue falling down till the 2002/3 low.
Well, I do not know if that will be true but I will take caution in my trading if that turns out true.
I am looking at the S&P 500 index today and it has also broken the 61.8% Fibonacci support too. Let’s take a look at the S&P500 immediate support and resistance now!
It is Sep 15 today, and it will be another important day to mark on the “The Stock Traders Almanac”. 2 investment giants, Lehman brothers and Merrill Lynch, will disappear from the financial world. Lehman files for bankruptcy and Merrill Lynch is sold to Bank of America.
The announcement was released today and that has lead to the massive plunging across the almost all stock markets in the world.
Let’s look at the critical support of US markets indices now!
It was like a roller coaster ride this week on US markets, bouncing up and down. It might appear to be the end of bear market and bull is bring the market up. However, the other some news hit and it come back down again.
The up and down was responding to some news release this week. There was one day positive news and another bad news, that explains the up and down roller coaster ride.
Let’s look ahead on the upcoming stock market trends on Dow Jones, S&P500 and Nasdaq!
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!
There has been quite a lots of bad fundamental news surrounding the US stock market now. Inflation is worrying, house price is dropping to a new low, plus there might be another round of the sub-prime concern that is hitting the 2 big mortgage giants in US. The market has been bleeding and dropping in the last 2-3 months. It has finally come to a halt last 2-3 weeks by swing sideway. That’s a relief to many of us, isn’t it?
What is the outlook of the US stock market trends in the near future?
I wrote 2 days ago that I am watching for the Dow Jones & S&P500 US market to form an ascending triangle and there is a possibility of break out to trend high. Did you notice Dow Jones and S&P500 broke out from an ascending triangle yesterday? Dow Jones broke resistance level at 11,735 level and S&P broke the resistance at 1,292 level.
Do you think that was a real break out yesterday?
I have been pretty bearish on the US stock market trends last month. I also initiated a few stock counters to short in this bearish market. Though there was moment that the market big boy kicked me out at my stop loss. There was also moment that I decided to take profit as well after the advance of the market last week.
However, how is the market outlook now?
I am now changing from bear to bullish now. Why do I say so?
