Tuesday, October 19, 2010

Daily Dow Jones Review, 19/10/2010

Despite earnings results that topped Wall street’s estimates, Goldman Sachs and Bank of America shares tumbled and dragged the overall market as the Dow plunged 165 points or 1.5% (intraday losses: 226 points) to a two-month low of 10979.

The sluggish performance was due to reports that a group of bondholders are trying to force Bank of America to repurchase bad mortgages. Investors also weighed a
surprise 25bsp rate hike (to 5.56%) by the People’s Bank of China to curb the red-hot real estate sector, and mixed data on the housing market and corporate results by Yahoo and Johnson & Johnson coupled with Apple and IBM’s forecasts
that missed estimates.

After surging 14% since end June 10, the overnight 1.5% fall on Dow was overdue. With the breach of the up-trend-line UTL support and weakening technical readings, the Dow Jones’s immediate outlook has turned bearish. Immediate resistance level is 52-week high of 11308 while immediate support levels are 10801 (30-days SMA), 10642 (40-days SMA) and 10507 (200-days SMA).

Daily Dow Jones shows downside bias amid a breach in up-trend-line and deteriorating technical.
Source: MarketWatch

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...