I posted 2 days ago that I have been expecting a Dow Jones technical rebound , wow, you know what, it happened yesterday with a big white candle. Furthermore, Dow Jones was nicely supported on the 50% Fibonacci line as I was anticipating. Phew, that’s the power of technical analysis.
There are also some positive news in the financial market. Oil price eased lower, the SEC intercept to prevent shorting of major financial stocks, that will prevent the manipulation of shortists in the market, plus companies have been reporting some positive earning than expected as well.
Do you think that will signal the end of the bear?
Well, the bearish downtrend still intact at the moment. We may see some technical rebound but the downtrend will be reversed only if we start to see some higher high formation again.
Dow Jones is facing some immediate resistance as well, I foresee it to be the 20d MA which may coincide with the immediate previous high which is approximately 11,400. Next resistance will be approximately 11,700.
We are also seeing bullish divergence forming on the volume as well.
Though S&P 500 did not hit the 50% Fibonacci support line and rebounded. Its immediate resistance is around 1,270 area.
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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Thanks, admin.