Saturday, October 16, 2010

Dow Jones Review, 15/10/2010

Daily Dow Jones shows critical support around 11,000 as technical indicators lost in strength.

Wall Street ended flat in a volatile session as investors fretted a surprise expansion in weekly jobless claims, a widening foreclosure crisis and expanding Aug trade deficits that could undermine the market's strength over the last five weeks.

Nevertheless, the technology sector continued to show strength, as Google and AMD share price soared following their better-than-expected 3Q2010 results. During the regular session, banking shares such as JP Morgan, Bank of America and Wells Fargo slid amid concern over growing legal scrutiny of home foreclosure practices.

Despite an overbought market, as long as major Dow Jones component stocks are able to report earnings that beat Wall street’s estimates, the Dow is likely to consolidate upwards ahead of the FOMC meeting on Nov 3. Immediate resistance level is 52-week high of 11308 while immediate support levels are the psychological.

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