Monday, February 21, 2011

Dow Jones Weekly Is Progressing Well Towards The Upper Trend Channel Around 13300-13500, 21-02-2011

Dow Jones Industrial Average rose 73 points to post a 3rd consecutive weekly gains, ahead of the G20 meeting in France over the weekend. Amid optimism on US economic and corporate earnings, offsetting another round of tightening in China and continued unrest in the Middle East. Last Friday, China's central bank said it will raise the reserve requirement ratio for the nation's banks by 50 bps, marking the
second increase so far this year.

Wall St is close today for Presidents Day holiday.

On Wall Street Recap, the Dow Jones is upside bias until RSI hits 80-85 region. Immediate supports are 12125 (mid Bollinger band) and 12004 (30-SMA) whilst resistance levels are 12500-13000.

In anticipation of positive results from Wal-Mart and Macys (22 February) and economic data including Case-Shiller home prices (22 February), existing homes sales (23 February), new homes sales/weekly jobless claims (24 February) and 4Q10 GDP (25 February), the Dow Jones is likely to inch higher in a shortened trading week.

However, there is a perceptible level of anxiety in the market, reflected by the 4.7% weekly gains on VIX to 16.4. Although the index is still historically low, it is substantially higher than in recent months and could suggest more share gyrations ahead.

Dow Jones Weekly Is Progressing Well Towards The Upper Trend Channel Around 13300-13500.
DowJones21-02-2011

Dow Jones Daily Is Upside Bias Until RSI Hits 80-85 Region
DowJones21-02-2011a

Source: StockCharts.com

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