Market Update : DJIA & NASDAQ

Dow Jones Industrial Average DJIA
R - 10,800
S - 10,270

The move from the Jan 19 close 10,725 to the bottom reached Feb 8 9,908 represents over a 800 point move or 8% which is a decent move and can be considered a correction from which we can now expect a resumption of the short term trend up.

After breaking the upward channel Jan 22 a month ago, the DJIA has now returned to that level and will need to support itself beyond 10,500 to test the resistance level 10,800 that it failed to break last month. Otherwise if we see a move south, then we will need to see 10,270 hold which is approximately the 50 day MA. This level is watched by institutional investors and like the game of chicken, the guy who moves first will move the market down or up depending on which direction they want to break.

I'd like to see two more days above 10,400 to be convinced to stay long. To add to the comment made previously at or up to 10,500 we may see a heck of a fight. The winds are in our favor, but will we have the manpower to push forward?


NASDAQ Composite Index COMP
R - 2,340
S - 2,120

For the NASDAQ, Jan 19 close 2,320 to Feb 8 close 2,126 was almost 200 points or 8%. Again we can consider this for the short term a correction and expect a short term resumption of the trend up.