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).

Wednesday, February 6, 2008

DJIA, 2/5/08

PRICE AND TURNOVER
Close: 12,265.13
Change: -370.03 (-2.93%)
Volume: 814,764,992

MARKET BREADTH (NYSE)
Net adv/dec issues: -2082
Net new highs/lows: -56
Net up/down volume: -3,602,400,021

The market moves lower by 3% today on the heels of the ISM NMI data that strengthens the case for a U.S. recession. The bears are clearly in control during the day and the session ends on the day's low hinting that more sell orders remain unexecuted and may spill over tomorrow's trading. The 12,800 level which we identified in our last weekly review as potential resistance is now actual resistance cutting down the upswing that began Jan22. The next critical level to look out for is the 11,600 support level which is the prior reaction low. I think that with the most bullish analysts now slowly conceding to an economic recession or to a fear of it, it is likely that in the near term we will see that support level seriously challenged and ultimately give way.

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