Dow Jones 30
The Dow Jones 30 rallied during the week, reaching towards the 24,250 level, but then gave back a significant amount of the gains. Perhaps this is due to the holiday coming up, and of course a certain lack of liquidity. However, I think what’s more important to pay attention to is this next candle, and whether the 23,000-level offer support. If it does, then we have the opportunity to continue the move higher. Otherwise, if we can break above the top of the candle for the week, we could then go to the 25,000 level, perhaps even higher. I believe that the next week will be very crucial.
NASDAQ 100
The NASDAQ 100 was very noisy during the week, breaking above the 6800 level at one point, before turning around and forming a shooting star. That shooting star is very negative looking, and a breakdown below the bottom of the candle stick would perhaps have more sellers coming into the marketplace. I believe at that point; the market will probably go down to the 6200 level where would find some support. Otherwise, it’s not until we break above the top of the candle stick that I feel comfortable buying. However, if we get some type of hammer or supportive candle like that print for this week, I could reevaluate, but right now it certainly looks a bit suspicious currently as things stand.