Whats Next in Dow

The closing for Dow Jones as on 13th July 2009 was 8331.68, with around 185.16 points up, in the case of S&P500 its close was at 901.05, around 21.92 points up, what an bounce back.

Now if we see at the charts of Dow which are as follows : -

If we see the historical data in the case of Dow, the rally which started in the stock which took it up to an high of 8700 levels and then crashed it down to 8100 levels approx, do you know what was the clue to check the rally, this 8700 rally in Dow had made all the world markets to go zoom.

If we see the historical data of S&P500 also, above 900 it goes, which made a rally in dow, last time also, it closed at 898.00 soso approx, and dow crashed down to a much lower levels then before.

Thus the world markets crashed and our indian markets also crashed down to 3900 levels.

Today if we see the world markets all have rallied, now for Dow, if the S&P500 sustains above 900 then the world markets are going to out perform with the out performance of Dow Jones.

Keep your eagle eyes on S&P500 above 900 go long and see is Dow out performing or else if 900 broken in short term then this time again it can tank 200 or so points.

Trade at your own risk, this information is for educational purpose.