Spread Betting Opportunities: November 12, 2007
Monday November 12, 2007
This edition of Spread Betting Opportunities follows up on the outlook for the Dow Jones Industrial Average.
Short Term Market Outlook: DOW JONES
The most recent chart of the Dow Jones Industrial Average is presented below.
In the last market update, I noted that the technical evidence suggested the presence of underlying bullish sentiment in the Dow despite the heavy losses seen up till then. But I stated that “for that bullish move to materialise however, the important question is whether or not we can get a follow through on Friday to now get a close above 13350...”
Unfortunately, in line with the way the index has been trading for the past 10 days or so, the bullish confirmation failed to materialise as the Dow struggled to get the required follow-up move. That failure formed the basis for further weakness into support around 13000.
At this juncture, the Dow is at a critical level as it is now close to the low of the mid-August sell-off (on a closing basis). If 13000 fails as support, the next downside target from here is just below 12900. 13400 is now likely to act as important price resistance level for any rally. Overall, things could get worse before improving.
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