Wow! Stock market rallied up to 16,000 points level with Dow Jones Industrial and S&P500 reaching all-time high. Is it good or bad? Many investors are wondering this trend can continue its momentum.
Honestly, no one knows the future direction of the stock market. We sometimes look at the chart and see its resistance and support. Moreover, we also need to see its trading volume. On the other hand, some people look at news and fundamentals of companies. We are basically making educated guesses.
In today's view point, I believe the Dows is at the resistance level at around 16,100 points. If it rallies above this resistance, then the stock market will have its new highs once again. However, if it breaks below 15,800 points, it may go down to 15,500 points or lower.
Next week is important to watch for especially the Fed's decision on any hint on tapering.
Until then, good luck trading!