Hello guys, seems like many of you who trades in the US stock market are enjoying a long weekend because its the Columbus day today (Monday) and US banks are closed in observance for this so expect a slow moving trading session. Anyway, as a follow up on my technical analysis on the Dow Jones Industrial Average (^DJI) last September 22 (kindly see this link), I present to you my updates. As we can see, the index has broken out from the 3-year resistance line 2 weeks ago and last week, the 11,000.00 psychological level has also been cleared as well. Right now, the ^DJI could continue to head north but would experience some selling pressure at at 11,309.00 which is the 2-year high. If the index is able to moves pass above its 2-year high, the next resistance could be 11,933.50. On the other hand, in case the index experiences a short term correction as investors take profits, the significant support could be the 18-month uptrend. If the trend line gets broken furthermore, the next support could be the 10,000.00 psychological level. Still, as long as the uptrend remains intact, the bulls are most likely in place.
The days ahead could be shaky for the US stock market as well as for some Currency Pairs because of the following: 3rd quarter earnings report of publicly listed companies are on its way; Fed Chairman Ben Bernanke will be speaking on Wednesday to participate in a panel discussion about business innovation; Many key data are going to be released by the US on Thursday such as the Producer Price Index, International Trade Balance and Unemployment Claims at 13:30 (GMT); On Friday, the Consumer Price Index, Retail Sales, Core Retail Sales and the Preliminary UoM Consumer Sentiment will be out as well at 13:30 (GMT) so expect an increase in market volatility during these periods. Also, these data are important to follow because it determines how the US economy is doing at present.