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).

Saturday, May 3, 2008

DJIA 5/2/08 STOCK MARKET TECHNICAL ANALYSIS

TECHNICAL ANALYSIS
Primary consolidation * Intermediate downtrend * Minor uptrend * Support 11700 * Resistance 13800 * Price objective 13800 * Broken intermediate trendline

The Dow closes the day up 0.37% and finishes the week ahead by 1.29%. YTD the index is down by only 1.56%. For now, the short term advance prevails over the bigger declining tendency after breaking above the intermediate trendline on May-1. This break is significant because it is a customary early signal that the intermediate trend may be changing. But before we start calling this the start of a new intermediate uptrend, let's be clear that a trend change could mean any of 3 things: (1) a change in slope but without a change in direction, (2) a change from a directional to a non-directional tendency i.e. from a downtrend to a sideways movement, and (3) a reversal of the current direction. Therefore, we should be looking for further evidence to support that a bullish reversal of the intermediate trend is indeed taking place. This means we need to see the advancing minor trend reverse downward and establish a higher low for the intermediate trend. A higher low constitutes a provisional uptrend.

PRICE AND TURNOVER
Period: EOD/TODAY * EOPW/WTD * EOPM/MTD * EOPY/YTD
Close: 13,058.20 * 12,891.86 * 12,820.13 * 13,264.82
Change: +48.20 * +166.34 * +238.07 * -206.62
Change: +0.37% * +1.29% * +1.86% * -1.56%
Volume: 643.3M

MARKET BREADTH
Net Adv Issues: +491 * Net New Highs: +22 * Net Up Volume: +735,478,898

MARKET REVIEW, EARNINGS REPORT, ECONOMIC DATA & OTHER HEADLINES
AP|Stocks give up gains from employment report|Fri May 2, 5:46 pm ET
AP|Economy shows resilience; jobless rate falls|Fri May 2, 4:42 pm ET
AP|Chevron's 1Q profit of $5.17B|Fri May 2, 5:18 pm ET
CNBC|Microsoft Raises Yahoo Bid|02 May| 06:30 PM ET

No comments:

Post a Comment