- Dow Jones reversed from 61.80 retracement level.
- And the upper down trend line is broken now.
- Sustaining above this line will be positive for now. If close is above these levels we can see good upward momentum during next week
June 25, 2010
- Falling wedge in hour chart.
- It is shown with a line chart so a break out and close above the down trending line is necessary for a confirmation.
- At least a close above 1086 is necessary for the validity of the pattern.
- A downside break out would invalidate the pattern
- Dow Jones like sp500 has a possible falling wedge pattern.
- But it is close to a down side break out which will make it invalid.
- but since it is a line chart we should wait for the closing.
- If it closes inside the pattern there is a chance of an upside break out today.
U.S. Index Futures were trading lower suggesting a lower opening for the major indices of wall street.
Asia and Europe were trading weak. European shares were also trading near two week low, And they are expecting some more bad news from the G20 Meeting. Japan's Nikkei fell 1.9 percent to close at low of the day suggesting more falls to come in the coming days.
Euro is struggling to cross 1.23 mark. for the last two trading days it has been trying to cross this mark but unable to make a good close above 1.23 mark, this is another negative news for U.S. Markets.
GLOBAL MARKETS UPDATE
CHANGE IN PERCENTAGE
Hang Sen 40
- EUR/USD has broken down from a head and shoulders and triangle pattern in hourly chart.
- Both patterns seems to suggest some weakness going ahead.
- But if these are false moves then we can expect some positives.
- failing to close above 1.23 will be negative and that means slipping back to l.22 levels again.
- Reliance chart looks like a top has been made for the short term.,
- A daily close below 1046 would be negative and the stock then will slide to 1035, 1031 , 1022
- And the stock is also approaching its 50 DMA a close below this would trigger good correction.
NIFTY WEEK CHART
- Nifty after many day's have closed below the 5 day high EMA. indicating a short term weakness.
- Nifty is giving candlestick patterns like dojis indicating indecision among buyers and sellers.
- I have added the weekly chart with trend lines which shows support at lower levels.
- S&P 500 is now trading well below its 50 and 200 day moving average.
- The most important support areas are 1071, 1065, 1055, 1050 and a close below these numbers is good news for the bears.
- The bearish engulfing that formed in daily chart is showing its effects.
- S&P 500 TRIANGLE BREAK DOWN
- CLICK HERE TO SEE HOW BEARISH ENGULFING FORMED IN S&P 500
- S&P 500 is developing a triangle pattern in five minutes chart.
- This might be a consolidation before going down again.
- It is better to take a short trade from this pattern as the trend in larger time frame is down.
- Any upside breakouts may end up as a false one.