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).

Tuesday, October 14, 2008

DJIA 10/13/08

MARKET BREADTH NYSE
Net Advancing Issues 3111
Net New Highs -123
Net Up Volume 2,225,452,682

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 7882 | Prior resistance 10882

CHART WATCH
The Dow exhibits a short term capitulation move confirmed by todays 936pts uptick and the RSI. It is a good 1000pt range between support and resistance and extreme volatility swings could present very short term profitable opportunities for highly disciplined momentum traders. Trend followers, on the other hand, should remain on the sidelines. For now, any near term rally that this bounce espouses should be viewed with suspicion.

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