Friday, December 24, 2010

Dow Jones Continues To Edge Higher On Expanding Bollinger Bands, 24-12-2010

The Dow ended the week on a quiet note (+14 points), as mixed economic data kept investors from jumping in ahead of a long holiday weekend. Week-on-Week, the Dow gained another 0.7%, its fourth straight week of gains.

Overall, economic news (i.e. weekly jobless claims, November new home sales, December consumer sentiment, November durable orders goods) continues to showcase moderate improvement albeit slight below consensus.

Wall Street will be closed for Christmas tonight.

On Wall Street, in view of the expanding Bollinger bands and rising RSI, the Dow could head higher for the remaining trading sessions in 2010, offsetting the overbought slow stochastics indicators.

Immediate resistance level is 11691 (upper Bollinger band) whilst support levels are 11376 (middle Bollinger band) and 11258 (50-d SMA) points.

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