The US election is finally over and the market has returned to focus on the fiscal cliff and the Euro crisis. Since the brief rally on election day, the DJI gave back 430 points (3.2%), the SP500 loss 48 points (3.3%), the Nasdaq 100 dropped nearly 97 points (3.6%), and the Russell 2000 loss more than 30 points (3.7%). The week ended with all the indices closed below their 200 moving average.
Next week is another monthly options expiration week and expects increase volatility. A dead cat bounce rally could appear before OpEx and this rally should not be bought until the market has clearly shown sign of a reversal.
Here are the charts for the market indices highlighting the possible resistance and support levels.
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| DJI |
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| SP500 |
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| Nasdaq 100 |
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| Russell 2000 |
