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1.personally i think are market in the uS are overbought. some form of correction is necessary.
2. obama health care plan if sucessful will be the catalyst for short term pull back as investors will get jitters over the hughe bill and possibly plunge american into deeper debt.
Data last week haf bn ok & with the Fed staying put on their interest %rate, the US haf bn inching up slowly. Dow RSI is near the overbought region and has turned down slightly on Friday's selloff. Gues for Dow to con't moving up, more catalysts will be needed. Data will have to continue to show improvement in e economy.
Dow Jones Industrial Average: Hitting higher ground
The path is still clear. During the previous week, the Dow Jones Industrial Average (INDU Index) managed to record a new 52-week high while increasing 1.1%. For the present week, our bullish forecast still stays by virtue of the positive signal emitted from the MACD chart. Additionally, the current Wave 5 is also poised to push the index up to higher ground. Key barriers worth noting. Our previous resistance barrier at 10,729 has been broken above and current resistance now lies at the 11,168 mark as represented by the trend high during late Sep 08. However, any potential pullbacks should be limited to the 10,390 level as outlined by the 50-day moving average.
The DOW closed above last years close on the 8th of March and then proceeded to exceed its January highs on 17 March.
STI is 18 points off its January high of 2933 for the year.
