DOW JONES levels to watch

DOW JONES

The fraud charges brought against Goldman by the SEC has resulted in a sell off on the DOW Jones with huge volumes. Looking ahead the levels of 10950 which is the 20 DMA and then 10850 will be important support for DOW. If the index bounces off from any of these supports then it can easily clear the recent highs and continue its run how ever that will be difficult due to high volumes on the sell off day. On the other hand if the support of 10850 breaks then the index will test lower support of 10750 and then 50 DMA at 10600.

All these levels on DOW are important for the Indian markets as nifty has been underperforming the DOW for past 1 to 1.5 months and a fall in DOW will be accompanied by more intense fall in nifty, so the levels to watch are 10750 on DOW and 5100 on nifty, break of 10750 will most probably lead to break of 5100 on Nifty.