Market Update : DJIA & NASDAQ

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

A very strong finish to the week! The bulls are on a roll! The question is whether there is enough money out there to really push volume forward and keep moving the markets up. There appears to be some stability forming in the U.S. economy, but the big issues still remain - jobs and housing loans. Unless people feel more secure about their jobs, they will not buy consumer goods. Neither will they buy big ticket items like cars and white goods let alone homes. Interest rates are low, but for how long? Consumers are more likely to pay down as much debt as they can with any additional money. Further the stimulus money is going to have to come to an end as will low interest rates. What will need to be kept in place is retaining people in their homes and reduce the need for foreclosures. If you kick people out of their homes, you take away a significant psychological form of security. Buy people more time responsibly to keep their homes until they get a job or gain enough equity back in their homes to 'comfort' the banks and support asset values will do more to get the economy back on track.

Next is jobs. If you have a job, are able to keep your costs down, reduce debt, and stay healthy, you will survive. If you at least had some saving, you can survive for a while, but you gotta get cash in the door eventually.


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

Technology is king! Some big moves this week and we are getting closer to Resistance at 2,340. Look for topping out in the coming weeks and a pull back. Take profits as you go through the coming week.