Thursday, October 16, 2014

Mayhem At Wall Street

On  15Oct 2014 US equity market collapsed to such an extent that it felt like a mini crash. Dow Jones Industrial Average capitulated from day high of 16313 to a day low of 15855, finally closing at some respectable score of 16141. One can well imagine the plight of traders on the long side who had to endure a plummet in Dow of 458 points in single trading session. It must have felt as if the Day of Reckoning has come.

The silver lining to this scary tale is the closing point of Dow. The recovery in late trade was remarkable and it is harbinger of better things to come. Technical chart of Dow is showing a 'Hammer' in candlestick pattern. This means that Dow for the present should not go below 15855. In coming days we can expect Dow to rise from this hammered price of 15855 to at least 16588, which is the 200 day moving average line.

Good Luck!

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