On Friday evening the US markets took very ugly turn and it corrected by 2.5%. From the above chart we can clearly see that DJ Index found resistance at 12770 levels which is exactly at the resistance line. From the second chart can also observe that 12770 was a very important resistance and it was at this level market made its temporary top during the month of 20th February 2007. We can also observe that the market found support at this same level around 26th November 2007. Failure to cross this level will have a very vital implications for global equity market. The only major support below 12000 is at 11600 and if these supports are broken, we will see the second round of correction in the global equity market.
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