Market Upates : DOW S&P and Nasdaq Composite

Markets are shaping to be repeat of 2008 for me in over all markets in every aspects. I hope its not sequel and the market carnage does not continues, At the same time I don't expect V shape recovery as market does not like it. The normal trends for longer term can not be surpassed the short one so we might have deeper correction coming this summer which is inevitable and we are doomed to fail. My ultimate target on DOW is around or below 5500-5800 before we end this entire bear market and this may be a month or year or 2 or 3 years from now, And same is with S&P 450-500 and NASDAQ we might entire into depressed state where in we can not have future for years before we see consolidation in tech sector. Looking at the current state of the economy its deteriorating but at slower pace when compared to last quarter of 2008.

With the govt massive intervention this is not going to heal the problem but its creating so much of huddles to real economy as might see currency crisis coming. We know now dollar is dead and its like dead man walking. Look for the previous post as money pouring out of US 30 years treasuries, And may be they need to go US 50 years or 100 years to invest before they can turn around this economy but that not going to for this life span if they introduce :). Anyway back to indicies now,

NASDAQ composite has been the leader for the enter bear market rally when compared to s&p weighted and Dow composite. It really has shown some significant moves lately and this time for the index its either now or never, its like do or die situation for the entire technology. Okay now lets watch closely

(a) breaking above may highs at these current levels is not sustainable
(b) holding the support around 1550 is good sign and consolidation for longer term until proven for future move up .
(c) breaking below march lows is carnage for the tech industry as we might mass layoffs in every corner.



on dow its same (a) & (C) as of NASDAQ but look for the next support around 7800.



on s&p's look for the support around 825



Bullish case for me are Precious metals, Energy, Commodities,Health care (longer term consolidation in this sector and obama play would ignite), Mining. Will post these sectors in coming days. Good luck and happy trading.