Wednesday, September 22, 2010

Dow Jones Industrial Average Review, 22/09/2010

The Dow Jones ends flat after rising as much as 80 points in an intraday trading following the strong August housing stats of 598k beats the consensus of 535k. Together following the word from the Federal Reserve that they are ready to do more to help the economy. However, the Dow ended flat with a 7.4 points gain to 10761 due to profit taking activities after surging 7.4% in September and the Fed's cautious outlook on the US economy.

The 10-year treasury yield rallied to 2.59% from 2.70% earlier as investors saw the Fed's comment as a signal that more bond purchases were on the way. Meanwhile, the dollar also declined to a six-week low at 1.325 against the euro and slumped against the yen to 85.1.

For Wall Street market, we may witness some consolidation ahead as the Dow Jones already surged 7.4% in September amid still cautious economic outlook by the Fed. Immediate resistance levels are 10900-11000 whilst support level is around 10500.

Dow Jones is likely to to take a breather following a doji formation and negative cross in the slow stochastic chart.
DowJones22-9-2010 review
Source: MarketWatch

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