Dow Jones 30 and NASDAQ 100 markets rally during the week, but show signs of resistance
Dow Jones 30
The Dow Jones 30 rallied during the week, reaching towards the 25,000 level, but then pulled back to form a bit of a shooting star on the weekly chart. That’s a very negative sign, and I think that we could pull back from here. However, there is a significant amount of support below, and I think that although we will probably fall from here, it is more than likely going to be value that people will be willing to take advantage of at lower levels. A breakdown below the 23,000 level unwinds this market drastically. Otherwise, we could turn around and break above the 25,000 handle and go much higher.
Your capital is at risk
NASDAQ 100
The NASDAQ 100 rallied initially during the week, breaking above the 6800 level one point, but then turned around to form a shooting star. The shooting star course is a negative sign, but I think there is also a significant amount of support underneath, not only at the 6500 level, but also the uptrend line. I believe that every time we pull back, the buyers will be interested in buying this market. However, if we were to break down below the 6400 level, the market will probably go to the 6200 level, and then possibly the 6000 level. That would be a break of a major uptrend line, and in fact very negative. The alternate scenario of course is breaking above the top of the candle for the week and going to 7000.