Thursday, September 22, 2011

Wall Street Outlook: DJIA: Downside Risks Increased

Wall Street Recap: Dow Jones tumbles 284 points as Fed disappoints
The Dow Jones plunged 284 points as investors were obviously disappointed following the Fed US$400bn debt-swap program and its grim outlook on U.S. economy. In addition, downgrade of several Italian bank ratings by S&P kept alive investor concerns over Europe’s debt crisis.

Sentiment was also affected by Moody’s credit ratings downgrade on Bank of America and Wells Fargo and the European Systemic Risk Board’s remark that threats to the financial system have increased “considerably” amid the worsening Europe sovereign debt crisis.

Wall Street outlook: DJIA: Downside risks increased
Following the 384 points plunge on Dow in the last three sessions, the Dow Jones technical outlook has turned negative.

The short term uptrend line support near 11000 is likely to be tested soon due to weakening technical indicators.

Immediate resistance levels are 11316 (mid Bollinger band) and 11610 (50-d SMA) whilst supports fall on 11000 and 12 September pivot low of 10824 points.

Daily Dow Jones: Downtrend To Resume Amid Fragile Uptrend Line Support And Bearish Indicators

Source: StockCharts

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...