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Stock market is having a little trouble

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The Dow Jones Industrial Averages dropped almost 200 points last night! Is this the news to be expected from us?

The DJIA dropped because of the bad earnings that is going to be posted by companies. In fact, the DJIA had up for almost 3,000 points last year; every time it's making new records. Will it continue? Well, the trend is still in up trend and has not been broken since the year 2009; however, the Dow Transportation has reached its upper resistance level - if you connect the resistance line from its previous years. This is a sign for the DJIA to have a minor retreat from its current level.

So, it is completely normal to see such big, unexpected drop in one day. I suspect that the DJIA will drop more in the first quarter. If the Fed will minimize its easings and lower the interest rates, then the stock market will react immediately and blow up. Investors should be aware of this since what's moving the stock market forward is the quantitative easings!

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