Friday, December 17, 2010

Daily Dow Shows Strong Resistance At The Upper Bollinger Band Around 11600, 17-12-2010

The Dow closed 42 points higher at 11499, a fresh 52-week high, amid better-than expected reports on weekly jobless claims, December Philly Fed manufacturing data and November housing starts.

Sentiment was also boosted by higher profit forecast by economic bellwether FedEx, overshadowing the European debt woes following a possible downgrade on Spain’s debt rating.

After the closing bell, shares of Oracle and Research In Motion rose after releasing their upbeat quarterly results.

On Wall Street, strengthening economic data and a low VIX around 17 could signal that a lot of bad news has been discounted. In our view, this will drive the Dow Jones towards our envisaged technical resistance levels of 11700. Immediate support levels are 11000-11200 points. Strong resistance at the upper bollinger band around 11600 level.

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