OUTLOOK
Dow component stocks drop -35.99 pts (-0.29%) on moderate volume. It opens slightly lower and trades within a 72pt range as more concerns about the financial sector [Washington Mutual to Get $7 Billion in Fresh Capital|By Reuters | 08 Apr 2008 | 10:20 AM ET] and the US economy [Fed Minutes Show Worries About a Deep Recession|By AP | 08 Apr 2008 | 03:36 PM ET] come out during the day [Small Business Optimism Index Hits All-Time Low|By Reuters | 08 Apr 2008 | 07:43 AM ET]. The market's minor uptrend is on a 5-day corrective mode preceded by a steep 2-day rally and this unfolds into a flag pattern on the daily chart. The height of the pole suggests that a successful completion of this bullish pattern can break the major resistance of 12,800, although I will be wary because this level has recently cut down 2 advances in as many months. For now, let's just say that the pattern corroborates the validity of the short term trend and the likelihood that it still has some ways to go. We need to keep our focus on how resistance will deal with the oncoming advance.
PRICE AND TURNOVER
Close: 12576.44 * Change: -35.99 (-0.29%) * Volume: 550,155,072
MARKET BREADTH
Net Adv Issues: -576 * Net New Highs: +19 * Net Up Volume: -900,104,858
TECHNICAL ANALYSIS
Undefined major trend * Interrupted secondary downtrend * Minor uptrend * Major support 11600-11700 * Minor support 12,200 * Resistance 12,800 * Double bottom and flag patterns in the daily chart.
Dow component stocks drop -35.99 pts (-0.29%) on moderate volume. It opens slightly lower and trades within a 72pt range as more concerns about the financial sector [Washington Mutual to Get $7 Billion in Fresh Capital|By Reuters | 08 Apr 2008 | 10:20 AM ET] and the US economy [Fed Minutes Show Worries About a Deep Recession|By AP | 08 Apr 2008 | 03:36 PM ET] come out during the day [Small Business Optimism Index Hits All-Time Low|By Reuters | 08 Apr 2008 | 07:43 AM ET]. The market's minor uptrend is on a 5-day corrective mode preceded by a steep 2-day rally and this unfolds into a flag pattern on the daily chart. The height of the pole suggests that a successful completion of this bullish pattern can break the major resistance of 12,800, although I will be wary because this level has recently cut down 2 advances in as many months. For now, let's just say that the pattern corroborates the validity of the short term trend and the likelihood that it still has some ways to go. We need to keep our focus on how resistance will deal with the oncoming advance.
PRICE AND TURNOVER
Close: 12576.44 * Change: -35.99 (-0.29%) * Volume: 550,155,072
MARKET BREADTH
Net Adv Issues: -576 * Net New Highs: +19 * Net Up Volume: -900,104,858
TECHNICAL ANALYSIS
Undefined major trend * Interrupted secondary downtrend * Minor uptrend * Major support 11600-11700 * Minor support 12,200 * Resistance 12,800 * Double bottom and flag patterns in the daily chart.
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