Tuesday, January 8, 2013

The pullback during the last 2 trading days in the stock market, as viewed through the Dow Jones Industrial Average, is to be expected, as the stocks gained too much too quickly (over 500 Dow points in less than a week): Traders had to take some profits off the table in anticipation of the "official" beginning of the earnings season in the US today after the close today with Alcoa (AA) reporting.

Our model predicts/projects that the current pull back's target is 13,235, but it is possible for the Dow Jones Industrial Average to dip as low as 13,145, without invalidating the aforementioned 3rd thrust target of Dow Jones Industrial Average at 14,037 (13,778 - 14,297 range).  

A close below the support of 13,884 on the Dow invalidates the above calculations.



No comments:

Post a Comment