US stock market has been declined since the falling of the 2 big financial giant – Lehman and Merrill Lynch. US Congress has finally approved and give the green light to the bail out plan.
However, the market had a big fall yesterday and it was once Dow Jones dived by 700 points. That’s an unbelievable fact, but it happened.
Let’s take a look how is the Dow Jones stock market trends using technical analysis!
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!
Following the part 1 of bearish outlook on US markets – Part 1 – Dow Jones, we shall now look at the part 2 on Nasdaq after hitting the stubborn resistance last week.
Similarly to our earlier post on Dow Jones, we shall now analyse Nasdaq on both daily and weekly chart.
Let’s get started!
I was watching the on the 3 US market indices hitting stubborn resistance last week and I was very cautious that market can turn downward anytime. Indeed, uncle Dow Jones took a big diving and formed a dark big candle. Nasdaq was hitting 200d MA and discontinued its earlier rally. It is now back to the same level before the rally.
It was a bleeding week last 5 days. Where do you think the market will go in the coming week?
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?
As observing the US market has no strength to move up, I again did the screening for stock market picks to short in the US market. Today, I found 2 candidates are trading near their resistance now.
They are Boeing and Tesoro Corp.
