I have not posted US Dow Jones stock market trend for quite a long while since June. And I am sure you know that US Dow Jones has been going upwards in the past 4 months as the world economy is recovering.
Is Dow Jones Upwards Momemtum Sustainable?
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 doing some consolidation last week and I have also warned of possible weakness in the US stock market. S&P500 is also showing some weakness in the weekly chart now.
Let’s watch the video now!
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!
The market is definitely in the down trending bearish market. I am sure no one will disagree with that. Indeed, there are lots of people losing lots of money in the bear market, however, do you know that you can also make a profit in the bear market as well?
I am now working on some back testing in order to develop a trading system for myself. I am indeed surprise with some of my back testing results to give me a almost 60% Return on Investment (ROI) in during the 4 month period from Jun 1 – Oct 1, 2008.
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!
