Market Analysis 01/10/2005

A moderate sell off this past week has brought major indices to medium support of 50 days moving average. A moderate support at the breakout line coincides with 200 days moving average support. I believe this level represents a decent buying opportunity should the major indices fall lower. My bias has not changed. I still believe buying at the breakout line will give long term investors a return of 10%. Here is what I wrote on the past about the good buying opportunity.

In case you're curious, the support level that was mentioned are 10,200-10,250 level for the Dow Jones Industrial Average, 1940-1980 level for NASDAQ Composite, 1125-1130 level for the S&P 500.

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