Charting Money: Another Weak Week For U.S. Stocks
21 Mar 12:00
By Stephen Cox, CMT
A Dow Jones Newswires Column
NEW YORK (Dow Jones)--The Dow Jones Industrial Average is roughly 40 points
above significant short-term support at 10401.60. Slowing daily technical
momentum suggests that the support will be tested presently. If it doesn't hold
on a daily closing basis, then a dip to 10286.60 is likely, perhaps by very
early April.
If 1833.01 support for the Nasdaq Composite is taken out on a daily close,
observers will have to allow for a test of the lower 1700 handle.
And if DJIA can close above 10567.72 on March 28, the last trading day of
this month (March 29 is the Good Friday holiday), it will have recorded an
upside technical breakout on the long-term chart.
In that case the Average would be pointed up at least to the 10800 handle.
Lifting The Yield Curve
The IMM leading eurodollar has slipped below 97.40 support. A settlement
below that level probably means a test of 97.07. It definitely means that a
major top, 98.26, was recorded on the continuation chart in mid-January.
Important resistance to the U.S. 10-year yield now is 5.471%. End-of-week
trading above that level suggests a test of 5.707%, perhaps before May.
U.S. Dollar ... Hanging On, or Hanging Out?
The nearby U.S. Dollar index's intraday high of 117.65 is virtually the
117.66 technical level that has figured in this column lately. Moreover, the
intraday low of 117.05 is a new low for the two-month downtrend. But for now
the index is holding above
But for now, the Dollar Index is holding above 116.95 support, and the dollar
is firm relative to the yen and the euro.
USD/JPY is technically strong - well above 130.93 support. EUR/USD failed a
test of 0.8827 resistance and is headed for 0.8770.
To try out the new Charting Markets weekly technical newsletter go to
djnewswires.com
For more technical analysis see: Dow Jones Newswires, N/DJTA; Telerate, page
4073; Bloomberg, NI DJTA; and Reuters key word search "Charting Markets." CQG
key word search "Charting".
-By Stephen Cox, Dow Jones Newswires; 201-938-2064; stephen.cox@dowjones.com
(Stephen Cox, a chartered market technician, is chief technician for Dow
Jones Newswires.)
(Data by CSI, Commodity Research Bureau)
(END) DOW JONES NEWS 03-21-02
12:00 PM |
