Markets Next Step Important

By August 17, 2014 Market Analysis No Comments

After falling from the top made on July 17th it looks like market bottomed on August 7th. The upward move on August 8th and 9th looked like corrective move to the upside and then another leg down. However, the action of the market till August 15th is suggesting that market has indeed bottomed on August 7th and the upward move has higher probability of continuation towards July highs.

Nasdaq100 is closed near its July 24th high of 3997. S&P closed at 1955 and Dow Jones at 16663. Among these three indices Nasdaq100 is the strongest followed by S&P and the laggard is the Dow Jones which hit resistance on August 15th and closed in negative after rising after rising from the low made on August 7th.

There is very tight price congestion for S&P near 1969 level. If S&P takes out this level then we could see S&P headed towards its July 24th high of 1991.

Dow Jones need to cross 16766 which is about 100 points above the current level.

This upward move could continue till end of August. What market will do starting September is unknown right now. May be another down leg for 2-3 weeks and then start of year end rally beyond 2000 and all the way to 2200.


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