Dow Jones futures have been extremely volatile, the chart shows about one dozen 100-point moves within a half-hour in the second week of August. “The put-call ratio is about the highest it’s been since July ’04,” says Andrew W. Waldock, principal of Commodity and Derivative Advisors LLC, “So when you combine that with expanding volatility, it’s an indication of a bottom.” In September he expects a push towards 13,800 and a low of 13,200.
“There is not enough fear or panic in the market to facilitate much more downside potential,” says Robert Fuhrmann, analyst for My Futures Online. And while we have seen a significant correction, he says the economy and valuations are decent and interest rates are low historically speaking, so earning from multinationals should support the market to higher levels. He expects to see a run up to 15,000 this year and in September, he picks a bottom of 13,500.
The DJIA is the strongest of the four major indexes, says Eli Radke, analyst for Secrets of Traders, and until it closes below 13,200, he is bullish. “The Dow is all international companies, so there is a lot of global risk in that right now.”
He picks a high of 14,000, and 13,200 for a low.
