Dow Jones managed to rally 320 point in 2 day on the hope of that fiscal cliff will be solved soon but there is something more then what we are seeing. Today Dow rallied 207 point. President on a trip to Myanmar till Wednesday. Congress is in recess this week. So there will be no talk on fiscal cliff. Today's rally was something more then we know. After hour France was downgraded. When Sovereign country are downgraded, they are informed 1 day in advance. France Government must have got the downgrade news on Friday. So it was perfect plot to keep market higher right from the start when European market was open. There is no doubt market is oversold. But today it bounced back from oversold to overbought zone. this kind of move is practically impossible without interference of central banker.
Anyways, Dow has changed the momentum from downtrend to uptrend after moving above 12580 and 12693 resistance. Dow jones is expected to open low/flat. Tomorrow, Greece bailout decision will be taken by EU finance minister and then Ben Bernanke is speaking at 12.15 pm EST. Watchout Gold, Silver movement GLD, SLV, SLW, AGQ, NUGT, DUST on the bailout news.
For bullish sentiment to continue dow needs to break 12786 resistance and S&P500 need to break 1388 resistance and on the downside for bearish sentiment to continue, Dow needs to break 12746 and S&P500 1374.
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| S&P500 trading plan |
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Dow jones trading plan.
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| Nov. 20 | 04:00 | | NOK | |  | | Norwegian GDP (QoQ) | | | -0.6% | | 1.2% | | |
| | 07:00 | | TRY | | | | Turkish Interest Rate Decision | | | 5.75% | | 5.75% | | |
| | 08:30 | | USD | | | | Building Permits | | | 0.865M | | 0.890M | | |
| | 08:30 | | USD | | | | Housing Starts | | | 0.840M | | 0.872M | | |
| | 12:15 | | USD | | | | Fed Chairman Bernanke Speaks | | | | | | | |
After hour top gaining and losing stocks
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