Wednesday, October 19, 2011

DJIA Major Resistance Levels Are 11600 - 11800, While Crucial Supports Are 10800 - 11000.

Wall Street recap: Dow Jones up 180 points on news of a hike in ESFS to €2trn
In line with the global selldown in equity markets, the Dow Jones dropped as much as 101 pts in early trade but ended 180 points higher (off high of +256 points) at 11577 following Guardian, citing European Union diplomats, said France and Germany had come to terms on an accord to boost the European Financial Stability Facility (EFSF) to €2trn as part of a comprehensive plan that should be endorsed at a weekend summit.

On corporate earnings, Intel, Yahoo and bank of America profits beat estimates but Apple and Goldman Sachs earnings were below consensus while Coca-Cola earnings was within expectation. Other key results this week are American Express (Wed) and Microsoft (Thu).

Wall Street outlook: Dow Jones: Range bound trade depending on headlines
Amidst the alternate gains and losses over the past few sessions, Wall St near term outlook will remain volatile, taking cues from the current ongoing reporting season and more importantly, the crucial outcome from the EU Summit on 23 Oct.

We reiterate that the Dow will continue to trade range-bound within the box. Major resistance levels are 11600-11800 while crucial supports are 10800-11000 points. A break below 10800 will drive the index lower towards 10400-10600 levels.

Daily Dow Jones: Moving Sideways Within The Mid Bollinger And Upper Bollinger Bands


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