Wednesday, June 8, 2011

Wall Street Recap: Dow Jones Ends -19 Points To Record Its 5th Straight Decline

Wall Street Recap: Dow Jones ends -19 points to record its 5th straight decline
The Dow rose as much as 89 points intraday but gave up all of the gains and ended 19 pts lower at 12071, after Fed chairman Ben Bernanke acknowledged the economic slowdown, but did not commit any further monetary stimulus ahead.

The sharp reversal came after Bernanke offered downbeat comments on the U.S. economy, but expecting the recovery should pick up in the 2H11 despite recent signs of weakness.

Bernanke also said the recovery two years after the end of the recession remains “uneven” and that conditions --particularly in the labor market --remain troubled.

Wall Street outlook: Dow Jones: Potential rebound soon
The Dow Jones plunged almost 500 points over the last five sessions and tumbled 6.6% from its 52-week high amid a slew of sluggish economic reports.

Although the economy has weakened in recent weeks, Fed maintains that the slowdown from high gas prices and Japan's crises is temporary, and growth should pick up later this year.

While awaiting more clues from Fed to deal with the slowing economy when it meets on 22 June, the Dow could continue its consolidation for a while before anticipating some form of relief rallies owing to its extremely oversold technical indicators.

Immediate resistance zones are 12300-12500 while supports fall on 12k psychological level, 150-d SMA of 11970 points and 200-d SMA of 11658.

Daily Dow Jones Has A Potential Rebound With The Inverted Hammer Formation And Extremely Oversold Indicators


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