Tuesday, October 4, 2011

Dow Jones Testing Year Low?

Wall Street Outlook: Dow Jones plunged 258 points despite positive economic data
The Dow Jones see-saw between the positive and negative territories in early trade on the back of data on manufacturing industries and construction spending topped consensus estimates. However, concerns about the Euro debt crisis soon overshadowed the positive economic data as German Finance Minister opposed moves to increase the scale of the Euro rescue fund and Greece passed budget deficit cuts plans that missed previous goals set as part of its bailout conditions.

As a result, the Dow Jones plunged 258 points to almost its lowest in the year at 10655.

Dow Jones Outlook: Dow Jones Testing Year Low?
After two consecutive days of more than 2% plunge, the Dow Jones is precariously close to its year low of 10597. Technically, while it is still moving sideways within a box (or sideways channel), investors fear of contagion effect is likely to see the Dow testing its year low of 10597.

Immediate resistance levels are the psychological 11k and 11,130 (mid Bollinger band) while support levels are at year low of 10597, 10429 (38.2% FR – from low in Mar 09 to high in May 11) and 10390 (74.6% FR – from low in Jul 10 to high in May

Dow Jones Daily: Moving Within The Box But Testing Year Low

Source: HLeBroking.com

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