FX.co ★ DOW - 500 points down

DOW - 500 points down

The market is waiting for the crucial Fed's tampering decision. Selling pressure was triggered in stocks from couple of days. Largely hit by financials and interest rate sensitive stocks. Yesterday, Q3 GDP data was printed at 3.6% seasonally adjusted annual rate. The labour market, recent rally in equities and consumer spending signs some healthy atmosphere in the US economy. This indicators spread rumors that the Fed will start its tamper which intended to push down interest rates and stimulus growth.

In 2014 we could expect a good year for US. Supported by job data, raising home lead to more consumer spending.

In the Dow front we penned 15,800 is the crucial level for coming days. Last two days Dow managed to close above 15,800 levels, even though it hits low at 15,794.

Support- 15,800

Resistance - 15,960 16,164.

Close above 16,200 gives fresh break out for another 500 points rally on cards. We could expect 16,700 is the higher level of the current trend line.

Close below 15,800 could a fall by another 500 points to 15,300. Very crucial level for Dow to hold up. IF it breaks and close below the 15,300 level could lead a big fall in coming days.