Dow Jones has finally broke the key support of the 2001 low, this is what I have been warning everyone since I started blogging here. My last post in early Feb also see the Dow Jones technical analysis showing the possibility for the market to hit such a deep bottom.
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!
Dow Jones Market Has Hit the Bottom
Looking at the Dow Jones chart below, I would say the market might have hit the bottom now. Plus, all financial crisis should be over for now as all the financial institutions has written off most of their bad losses. I do believe they should be posting some mild or moderate gain starting from Q1 this year. So, this may increase the possibility that market might have hit the bottom.
However, is Dow Jones ready to rally upward to break new high again? I do not think so. I think the bull is still resting and not in action. I am seeing the Dow jones to be supported at 6,500 and key resistance at 7,500. So, the market may swing sideway in this region for a period or so until the next quarterly report season.
So, I would wait for a confirmation signal of resistance at 7,500 to validate this hypothesis and then, I will adopt a sideway market strategy to long at support or short at resistance to make money in the stock market.
Dow Jones Industrial Average March Outlook 2009
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
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