Thursday, July 28, 2011

Dow Jones Crucial Uptrend Line Support Near 12100 Points, 28-07-2011

Wall Street recap: Dow Jones drops 199 points on debt ceiling impasse and poor economic data
The Dow Jones sank nearly 200 points or 1.6% to 12302 points as a stalemate over the debt ceiling pushed the U.S. closer to default. Sentiment was also dampened by a Fed report that economic growth moderated in many districts and a weak June durable goods order of -2.1% (May: +1.9%).

Overall, the debt deal dispute has stolen investor attention away from an earnings season that has produced higher-than-estimated results at about 81% of S&P 500 companies that reported so far.

Wall Street outlook: Dow Jones crucial uptrend line support near 12100 points
The Dow Jones already lost 3.3% or 422 points in four consecutive sessions as investors were grappled with a tug of war between the headline risk of the debt ceiling issue and better-than-expected 2Q11 earnings.

With the 2 August deadline approaching and no end in sight, market anxieties are expected to be heightened and lead to more volatility.

As technical indicators are trending lower, we could witness more selldown towards 12100 points, a major uptrend line support since Jul 2011. Further support is 11966 (200-d SMA) and 11822 (2-month low).

Daily Dow Jones Crucial Uptrend Line Support Near 12100 Points To Prevent Further Selldown


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