Dow Jones Industrial Average would lose 2%… or gain

Dow Jones is reduced to the minimum mark

In brief: Dow Jones Industrial Average started trading with a permanent decline. Objective reasons for the negative trend on the U.S. stock market does not exist. The main role of bearish trend.

Dow Jones Industrial Average fell against the bear’s belief in bad statistics. Bulls dug themselves in ambush, waiting for the right moment for a counterattack. Most brokers prefer to lower trading volumes in the secondary positions. Dow Jones Industrial Average is waiting for the bullish trend. Dow Jones Industrial Average may lose or gain about 2%.

Dow Jones Industrial Average trades now at 10,240.32 points. The index loses 18.67 points (-0.18%). In the coming months a broad market index is likely to be located in a side corridor, the boundaries of which are the levels of 1048-1147 units, approximately 5% deviate up and down from the 200 day moving average. Output S & P500 from the range specified in this or that side will be strong bullish or bearish signal, respectively. The sense that the American stock indices are looking up now, indirectly confirms the relatively low activity of buyers at yesterday’s auction of $ 30 bn by placing seven year treasury. It seems there has been the outcome of “money bags” from the protective harbor, where they hid from the beginning of sovereign debt problems in EU countries. Investment capital is again shifted to more profitable markets, especially stock and commodity. By the way the energy market has had an involuntary support Obama, forbidding drilling of new wells on the shelf along the coast of the United States to determine the full cause of the accident at the BP platform in the Gulf of Mexico. At the same time gladdened oil meteorologists said yesterday that their observations of the traditional hurricane season this year will be the most ferocious in 2005, just when the Gulf Coast struck the notorious Katrina. Against this background, oil futures jumped yesterday on 4,3%, or three dollars more than staying in one step from the plank in the psychological $ 75 per barrel. I would not be surprised if in the summer we will see a repetition of the April highs near $ 90 a barrel or even higher. Another technical indicator, which should draw the attention of market participants is the volatility index VIX. It is also called the measure of exchange fear. In mid-April in the wake of a general relaxation and intoxication growth stock indexes VIX fell to its lowest level in three years. But then in the next three weeks, an indicator of volatility, as if torn from the leash, rallied three times from 15 to 48 points, returning to the values of March 2009. Only after yesterday’s rally quotes VIX slipped below 30 points, and the graph he sank below the ten-day average. Fears of retreating. However, in the U.S. ahead of long weekend (Monday country celebrates the Day of Remembrance, and the markets will be closed), should think about fixing some of the profits.

Pavel Migin
2010-05-28 14:17, Economics.

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