The Dow Jones surged 1.9% or 214 points to 11483, fueled by a handful of M&A news (e,g, Google to buy Motorola Mobility for US$12.5bn and Bank Of America to sell its card business in Canada to TD Bank Group for US$8.6bn), shrugged off the sluggish Aug New York Empire State manufacturing index at -7.7 (Jul: -3.8). Sentiment was also boosted ahead of the highly anticipated meeting between by German Chancellor Angela Merkel and French President Nicolas Sarkozy today.
Current bullish technicals are likely to spur index higher towards our envisaged relief rally targets 11740 (50% FR) and 11993 (200-d SMA).
Dow Jones Daily: Bullish Technicals To Drive The Relief Rally Towards 11740 Points
Source: StockCharts.com
Dow can surge to 12000 levels before cracking down, most the stocks are looking tired, its time to be cautious on longs. please visit http://www.kalpeshmaniar.com for accurate forecasting of markets.
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