Hello trader friends! Today in my post is the Dow Jones Industrial Average (^DJI). As we can see, the index ended in the red a while ago as investors are wary about the Federal Reserve’s statement yesterday when they said it would keep monetary policy essentially unchanged but suggested some possible concerns about deflation. Anyway, up or down it has already been a good run for the Dow since it had gained more than 7% for this month of September. In fact, we actually thought there was going to be a double dip recession in the US market soon (kindly see this post), however the bulls proved us wrong and the 10,000.00 psychological level remained strong. This current up-move were lifted by recent US economic data and reports on the Eurozone. The US market’s rise could still continue if more positive data get on the way especially if the US unemployment rate and existing home sales coming out tomorrow turn out to be favorable. This in turn could heavily influence investors and traders’ confidence towards the market.
In my technical analysis, for this index to head further up alongside with the positive reports, it needs to first pass above the 3-year resistance line seen in the chart. If it successfully breaches that marker, the next resistance could the 11,000.00 psychological level then after that is 11,309.00. However, if this index drops, the current support that could hold on to it is the 18-month uptrend. If it slides further below that area, the next support could be the 10,000.00 psychological level then after that is 9,600.00.