This blog is committed to the serious study and valid understanding of technical analysis and its objective application to stock selection, risk management and execution primarily in the context of trading stocks listed in the Philippine Stock Exchange (PSE).

Friday, February 15, 2008

DJIA, 2/14/08


PRICE AND TURNOVER
Close: 12,376.98
Change: -175.26 (-1.40%)
Volume: 653,580,224

MARKET BREADTH (NYSE)
Net adv/dec issues: -1,839
Net new highs/lows: -49
Net up/down volume: -2,302,490,655

OUTLOOK
The market opens weak and closes lower under selling pressure. The buyers briefly take over an hour before the close breaking the intraday downtrendline to the upside only to fail with the sellers taking the index to close at the low. On the daily timeframe, the Dow ends its three day rally with today's decline of 1.4%. It remains within striking distance of the declining trendline resistance but today's downtick is not encouraging. The bigger trend continues to head south. There is no objective evidence to show, suggest or insinuate that a trend change or a reversal is underway so the odds are stacked in favor of a near term downswing occuring and prudence dictates that as of now, we view the developing symmetrical triangle as a continuation pattern.

No comments:

Post a Comment