DOW will Reverse?

 

At 10,300, this was the level when the DOW tried to rebound after falling from 10,700 level and after it had digested the Obama Proposal curbing bank proprietary trading and hedging activities and the China Credit Tightening. But the PIGS’ ( Portugal, Ireland, Greece, Spain) Deficit problem also sprouted out at that time sending the DOW into more corrections instead, going below the 10,000 level.

Market sentiment now is slowly creeping back up. More “better-than-expected” Earnings like the ones from DEERE and WHOLE FOODS are needed to provide impetus for the DOW to hit 10,500.

If we hit 10,500 level, the psychology will turn bullish. Confidence will be high and buying will kick in. This will propel DOW way past it’s the previous 10,7000 level.

The temptation to cash in profit after the DOW had risen 170 yesterday and 40 today may set in tonight. However, it is also possible that another green closing because volume and price action is also seen at the last 30 minutes of the session.

CRITICAL LEVEL – 10350 to 10,360

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