US MARKET - BEARS PREVENTING BULLS FROM MARCHING ON

The US equity market has been bearish in the past 1 week of trading because of negative financial and economic data. The current Israel-Palestinian war has also contributed to the already weakening market sentiment. The Dow Jones Industrial Average 248.42 points or 2.94% to 8,200.14. The DJI was very bearish in the morning as it plunged 300 points to the low of 8,144 in the early session from the opening price of 8,446.

In my previous article just 2 days ago, I mentioned that a technical rebound is expected because of a strong momentum, but it looks like the bears are still preventing the bulls from marching on. Looks like the DJI may test the support level at 8,100 points. If the DJI breaks below 8,100 level, then the bears start to take control again and the DJI may start to decline further. Next Support level is at 7,500 points.


5-min DJI chart on the 14th of January 2009 using NextVIEW Advisor. Click on chart for larger view.

In Europe, London's FTSE fell 218 points (4.9%) to 4180.64 and France CAC40 Index dropped 145 points (4.5%) to 3052. Expect markets in the Asian region to decline further today.

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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.

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