Important Market Levels
As an addendum of sorts to our Market Update, we're watching the following support / resistance levels closely:
DOW
11,000 is a key level (now support). We do not want to break below this in order to have sustained confidence in our bull rally.
11,100 is another key level--and we're above that right now. It would be very encouraging to see us hold this level. Essentially if we stay above this we're back into our horizontal channel.
11,200 is the big number--a move above this will signify that we've turned the corner. We'll have completed a "double-bottom" in the DOW, and things will be encouraging for long traders. While this may not happen for some time, this is a level we'll be watching very closely.
NASDAQ
2,000 is a huge number, and while we don't expect this to be threatened, a move below this would be significant.
2,030 is near-term support. We'd prefer to stay above this floor
2,080 is near-term resistance. We'd like to see the NASDAQ move above this level, preferrably on higher volume, and close on the high side of this number.
2,100 is another round number with psychological importance--a move and close above this would be further evidence we've turned the corner.
2,200 is the next big level--when we break this, we'll certainly be bullish, and will (like the DOW) have completed our double-bottom. However, this is likely some time away.
S&P
1,275 is the key number we're watching here--we'd like to see this index move above this level.
There you have it--lots to pay attention to over the coming days and weeks--it'll certainly be an interesting ride!
DOW
11,000 is a key level (now support). We do not want to break below this in order to have sustained confidence in our bull rally.
11,100 is another key level--and we're above that right now. It would be very encouraging to see us hold this level. Essentially if we stay above this we're back into our horizontal channel.
11,200 is the big number--a move above this will signify that we've turned the corner. We'll have completed a "double-bottom" in the DOW, and things will be encouraging for long traders. While this may not happen for some time, this is a level we'll be watching very closely.
NASDAQ
2,000 is a huge number, and while we don't expect this to be threatened, a move below this would be significant.
2,030 is near-term support. We'd prefer to stay above this floor
2,080 is near-term resistance. We'd like to see the NASDAQ move above this level, preferrably on higher volume, and close on the high side of this number.
2,100 is another round number with psychological importance--a move and close above this would be further evidence we've turned the corner.
2,200 is the next big level--when we break this, we'll certainly be bullish, and will (like the DOW) have completed our double-bottom. However, this is likely some time away.
S&P
1,275 is the key number we're watching here--we'd like to see this index move above this level.
There you have it--lots to pay attention to over the coming days and weeks--it'll certainly be an interesting ride!
posted by Dan at 8:36 AM
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