Market Comments – Dow Jones 21 Aug 13

DJI_daily_21Aug

After FOMC announcement on 21 Aug 13, DJ has dropped about 100+ pts on that trading day.
Currently, DJ is approaching its trendline support. If this support is broken, we are looking at support 2 and 3 at 14,640 and 14,360 respectively. MACD is still negative and there is no sign of crossing its signal line yet. Investors are urged not to long DJ but wait to see how the index behave when it reaches support.

If you are to observe, the previous resistance of 15,600 mentioned 24 May 13 posting was not broken in Aug 13 when the index attempted to make new high.

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