US Dow Jones Industrial Average (DJI): May just stay sideways

It was a price tsunami in the US equity market. The average range jumped to 800 points this month compared to the previous month. The DJI broke the immediate support level at 10,000 points found a strong support level at 8,000 points. This level was being tested for three times before it rebounded and close at 9,325 points today. Americans are now observing how the US$700billion going to be used to support ailing financial institutions and gave mixed reactions. The presidential election on November 5 is also another important date for financial investors.

DJI is now near the short term 30-day average while the longer term average is at 10,500 points. Investors may be more cautious this month and the result of the election may set new course for the equity market. The DJI may just stay sideways because investors and traders may want to wait and see what can the new President do to revive and restructure the financial markets. The trading range is expected to be between 8,000 points and 10,000 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.