Market Outlook Dec 27 2010

Market Outlook :
On Dec-23-2010 a candlestick formation confirmed a sell signal.Watch out for commodities Stocks , good for shorting as a result of China raising the interest rates .

Our Recommendation: ==> Maintain short position. Stop at 6023. December 24th price reflects reflects strong consolidation here!


Next Trading Day: Key Resistence & Supports
Protective stop = 6023
Trading Range ----> High = 6039 Low = 5962

Next Day Pivot Point ----> 5989
The [R3] or the most extreme high trading range is 6116
The [R2] or the extreme high trading range is 6066
The [R1] or the high trading range is 6039
The [P] or pivot point is 5989
The [S1] or the low trading range is 5962
The [S2] or the extreme low trading range is 5912
The [S3] or the most extreme low trading range is 5885


In this particular case if the price rises above 6066 then that would show momentum against Our short position and that would be a break out to the upside.
If the next day's close is below 5918 then that could be a sign that new downward momentum is beginning.
Alternate stop: 5944

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Previous Posts :

World market cues:

China's central bank raised interest rates on Christmas Day, moving sooner than many analysts and market participants had expected to ramp up its campaign to combat inflation.

Sectors most at risk of a leg down are commodity-related firms, which have outperformed this quarter as commodity and energy prices have rallied into the year-end.

US market Cues:

Initial jobless claims for the week ended December 18 were also out ahead of the open. They totaled 420,000, which is in step with the 424,000 initial claims that had been expected and down slightly from the tally of 423,000 that was recorded for the previous week.

In yet another sign the U.S. economy may be on the road to recovery, the Consumer Confidence Index released this week is expected to rise to its highest reading since May. Consumer Sentiment Survey, which improved slightly to a five-month best of 74.5, up from 74.2.

New home sales were a bit disappointing. They increase 5.5% in November to an annualized rate of 290,000, but that was still a bit less than the rate of 300,000 that had been expected.

European Cues :

London and European equity markets climbed on Friday, with the FTSE 100 in London closing above 6,000 for the first time since June 2008, in a shortened session as investors and traders prepared for the holiday getaway