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, June 18, 2008

DJIA 6/17/08

PRICE AND TURNOVER
Close 12,160.30
Change -108.78 (0.89%)
Volume 597.4M

MARKET BREADTH NYSE
Net Advancing Issues -553
Net New High -34
Net Up Volume -1,060,985,131

TRENDS
*PROVISIONAL PRIMARY DOWNTREND | Directional wave | Prior support 11634 | Prior resistance 13136
*INTERMEDIATE DOWNTREND | Broken trendline | Directional wave | Prior Support 11731| Resistance 13136
*SHORT TERM PROVISIONAL DOWNTREND | Directional wave | Prior Support 12076 | Resistance 12610

TECHNICAL ANALYSIS
Today's lower close suggests that the Dow may have found resistance earlier than we expected. This should not really be a concern because we already know that the trend is declining. In a clear downtrend, the high probability trade is to be short and not to trade long the short lived correction rallies.

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