Novice Investing - Market Analysis

Date: Friday 29th 2008f August 2008 12:44:13 PM

Market Analysis 12/05/2004

By: Novice Investing Staff

Nasdaq broke 2150 this past week. My medium term target has therefore been reached. Click here for the article. I currently still expect Dow to reach 10,750 over the medium term as well. Short term, I feel that the index has been going up too high too fast. But then again, it is hard to predict short-term direction. I will therefore refrain from making any short-term forecast.

This week, I will look at longer term charts to visualize what might happen in future years. I believe Dow to reach 11,000 in longer term (within two years). That is where the major resistance lies. For the nasdaq, I believe 2250 level is reachable in the long term. For S&P 500, long term, it can reach 1300.

As with other predictions, mine is not 100% accurate. Any external events such as terrorist attacks in the US soil will certainly change any predictive tools. However, it is better to be prepared than not. Therefore, if you can make a fairly good prediction, then you should do it and make decisions accordingly.

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