MARKET COMMENTARY

The Dow surged on news of positive economic growth. This is a major market-mover information; hence, it push the Dow higher. We may see further increase in the index but with limited extension. This is because of the strong resistance hovering just above it. If this resistance is breached, then we will have strong belief that the Dow has turned bullish. We will revise our view of the market trend then. However, if the Dow reverses on Friday and break the support line (ascending line), the market will remain trading in range or down.

In the meantime, we just continue to monitor the market without taking new positions at this moment. The volume continues to be weak, giving little insight to the sentiment of the market players. We can still see uncertainty in the direction of market.

If there is a strong move to either side during the trading session on Friday, it is good for you to pick up some stocks or indexes that move in the same direction. It may just occur.

DJIA Daily Chart

The Russell had made good rebound. We should see further gain on Friday. But the resistance is near. It is still too early to tell if it can break it. If it does not happen, we may have a double top formation, which is a rather strong resistance.

RUT Daily Chart

Of all the indexes, Nasdaq is the weakest among them. Therefore, I do not see the same euphoria in this index as in others. Let’s see if it will catch up with other indexes later.

NDX Daily Chart

STOCKS TO WATCH:

NIL

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