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).

Thursday, September 18, 2008

DJIA 9/17/08 - BREAKS PRIMARY AND INTERMEDIATE SUPPORT

MARKET BREADTH NYSE
Net Advancing Issues -2,954
Net New Highs -1088
Net Up Volume 274,101,318

TRENDS
*PRIMARY DOWNTREND | Directional wave | Prior support 10827-BROKEN | Prior resistance 13136
*INTERMEDIATE DOWNTREND | Directional wave | Prior support 10827-BROKEN | Prior resistance 11867
*SHORT TERM DOWNTREND | Directional wave | Prior support 11037-BROKEN | Prior resistance 11577

CHART WATCH
I mentioned in my recent post (DJIA 9/15/08 - BREAKS SHORT TERM SUPPORT) that if 10827 gives way, we could potentially see the Dow visit 9600 or thereabouts. Well, today it happened. The Dow breaks the all important level of 10827 which serves as coincident support for the larger primary and intermediate trends. This significant event signals the likelihood that we could see the Dow shift to trading at much lower levels. The "if" becomes reality and the contingent "potential" visit to 9600 now becomes a valid technical TP. Sell on rallies.

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