DJI is currently exhausted and is reacting to the resistance line mentioned in the previous posting. Candlesticks show signs of reversal. I would say DJI is currently consolidating. Nonetheless, it is still in an uptrend.
U.S. equity markets opened slightly higher this morning following the report that nonfarm payrolls had grown by 155,000, better than the expected growth of 150,000 (more coverage here). The December unemployment rate came in a 7.8%, flat with the revised figure for November, but below the expected rate of 7.7%. In Europe, non-manufacturing PMI data was release for the eurozone, and the reading for the entire group came in a 47.8, in line with expectations, but still indicating contraction. Retail sales were down year-over-year in Germany, but not by as much as estimated. In Asia, China’s non-manufacturing PMI fell slightly month-over-month and Australia’s reading fell from 47.1 to 42.3. U.S. equities rose early and remained in positive territory most of the day. The Nasdaq has posted the smallest gain following a report from Deutsche Bank that it does not expect Apple Inc. (NASDAQ: AAPL) to meet quarterly…
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DJI made a fierce rebound on 31 Dec 12 upon nearing its low of 12,818 on 30 Dec 12, 7 pts away from its support of 12,811. The market respect the support very well on this occasion which coincided with the announcement pertaining to the fiscal cliff. This was followed by gap up on 2 Jan 13.
I quote my comments for DJI on 28 Dec 12 – “The Dow had a -158 on 28 Dec 12, Friday. It closed at 12,938 below the 13,000 pts which it has held above consistently for the past 1 month. DJ is still bullish at the moment while making retracement. Currently near to fibo 50% of the previous swing which is at 12,916. The index will likely to reverse at about this level or at the next lower support at 12,811.”