US Stock Market Index: DJI (Dow Jones Industrial Average) – June 6, 2010

The Dow Jones Industrial Average (DJI) dipped more than 3% during the last Friday’s trading session because of the  less-than-stellar non-farm payrolls data released in the US and the scare of a possible default by Hungary. This led the investors to sell the riskier equities for the safer assets like bonds. Anyway, the index could range for awhile at least this Monday since no major economic data will be coming out of the markets. Still, more bad news especially those that are unexpected could hurt the DJI. Chartwise, if it slips again, it could run towards the declining neckline of what looks to be a head and shoulders formation. In my view, I think that the index could bounce off the neckline at least for the mean time. If it does,  the index could aim for the peak of the left shoulder in the shorter term. A break below the neckline, on the other hand, could send the DJI towards the 9,200 to 9,000 supports.