Friday, April 11, 2008

Update on Dow, S&P500 and NASDAQ 12 April 2008

DJIA


The Dow closed right at the 25 day moving average support level. I would tip the next support level at 12170 which is also where the old downtrendline is. A drop below 12170 would represent shorting opportunities to test the Jan and March lows.

It is entirely possible that the Dow may shake off the GE news just like that. Reason being that everyone forgot that GE has a financial arm in GE Money. Why should GE Money be any different from other financial companies? The CEO also has to blame for making empty promises.

In any case people may digest this and look forward. Next week is when the US reporting season kicks into high gear.

The GE results have also lowered the bar substantially. So the market is expecting very bad news. Any good news will bring relief to the market. We'll have to see how Monday goes.

From the SMA/EMA crossovers we can see that there is a signal for change to uptrend. But the 10 SMA has pulled too far from the EMAs hence a pullback was to be expected. Negative signal is that the price dropped below the 20 and 30 EMA.

S&P 500

Similar pattern to the Dow. 1312 support.

Also similar to the Dow.

NASDAQ
NASDAQ 2260 support as well.

No comments: