Dow jones above 19620 remain buy targets 20120 and then 20480
Dow Jones Industrial Average index this week closed at 19762 with loss. This was second weekly loss for this major index. After 7 weeks Bull Run market seen some profit booking and weak weekly closings but momentum still bullish and expect buying around support zones. For January 2017, DJIA monthly outlook remain bullish above major support of 19620. On upside 20120 and then 20480 are major month resistance zones as well as positional target levels. If Dow break down below 19620 on daily closing basis then expect short term downtrend and sharp profit booking as well as fresh selling up to 19270 and then 18780 levels. These will be target zones if bearish trend starts. Dow weekly chart price pattern as well as indicators are still bullish and suggesting upside for market in longer time frame.
S&P 500 Index above 2234 remain buy for January
S&P 500 Index this week closed at 2238 with loss. This was second weekly loss for this index. S&P 500 Index is seeing some profit booking after strong and one way rally from 2100 to 2280. For month of January 2017,above 2234 will remain buy and accumulate for positional targets of 2280 and then 2320. Daily closing below 2234 will be fresh breakdown signal and short term downtrend for S&P 500 Index. Below 2234, SPX future will head lower for targets 2190 and then 2145 in January series. As daily chart indicators are overbought we might see intermittent profit booking waves.
Nasdaq Composite below 5380 remain sell
NASDAQ index this week closed at 5383 with loss. This was second weekly loss for this tech index. Nasdaq Composite closed at major support but trend is still strong bullish. Momentum is fizzled out on profit booking but index might take support on downside levels.remain bullish above 5380 for upside targets of 5515 and then 5615. These are positional swing targets for NASDAQ future is it sustain above 5380 on daily closing basis. If Nasdaq Composite breakdown below 5380 then that might be start of fresh downtrend in short term and medium to long term correction in us markets. Nasdaq Composite below 5380 remain weak and absolute sell for breakdown targets of 5245 and then 5110. Daily chart price and indicators patterns are mixed. While weekly chart is with topping out patterns which is bearish signal for us markets.
VIX above 13.25 remain bullish targets for Jan. 15.5 And 17.2
closed at 14.04 with gain. On weekly chart VIX is bottoming out means these are bad time or high volatile time for us market in 2017. For month of January, VIX has major resistance at 17.25 and below it will remain weak means strong rallies or upside for US market. But if it closes above 13.25 then expect upside levels of 15.5 and then 17.2 in this month of January 2017.