Hello my Investors, Traders and Readers friends. Yesterday was a very positive day for the market. The DJ-30 went up 2.26%, the SP-500 increased 2.83% and Nasdaq Comp. it did in 3.2%. The volume of shares traded was low compared to previous weeks. However, this is not the most important of what happened yesterday. The most significant are the levels at which these indices reached. For example, the DJ-30 closed in 11,539 points. This value is only 10 points higher than the peak in August and 14 points below the next (and most important) level of resistance, which is the order of 11,555 points.
A similar situation occurs in the SP-500 and the Nasdaq Comp.. What is the significance of this? The market faces for the first time since his fall, areal level of resistance. And now it has in front of his face. Will be able to break it? or fall back?. This will be discussed today and probably will be defined during the present week. In my opinion, the market now faces only two choices: breakout and continues to rise or fail in their attempt and goes back down.
Importantly, this situation also presents a special week. From today until Friday, it announced a series of economic information that has been impacting heavily on the market. On Friday, we will have unemployment data in August. This information has been impacting the market in recent months.
If the market manages to break this important resistance level and the unemployment information is favorable, then we have a more robust stock market. But, if fails in the breakout and unemployment is presented in a negative way, then we have a new price crisis situation. I am not a magician, and I do not want to be. So I can only be "VERY" aware of the signs from the market. And act on these signals occur. I suggest you do the same. Generally, the market knows very properly communicate.
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