Monday, May 15, 2006
Daily Market Commentary
Updated Friday, 5/12 for Monday's market
Support Break
Read More...
Updated Friday, 5/12 for Monday's market
| Key DOW Levels for 5/15 | |
| UP | Above 11,550 |
| DN | Below 11,350 |
Support Break
- Dow violates key support at 11,425.
- NASDAQ and S&P continue to capitulate in the face of recent weakness. Both indexes closed near session lows and in close proximity to potential support levels. Considering the severity of this week's losses, we are likely to witness a period of retracement and/or consolidation.
Summary
Today's definitive break below 11,425 provided a clear indication of weakness and may foreshadow a test of the upward sloping trend line near 11,200. However, in the near term, we are likely to endure a brief period of consolidation and/or retracement as the index digests the recent decline.
- NASDAQ and S&P continue to capitulate in the face of recent weakness. Both indexes closed near session lows and in close proximity to potential support levels. Considering the severity of this week's losses, we are likely to witness a period of retracement and/or consolidation.
Summary
Today's definitive break below 11,425 provided a clear indication of weakness and may foreshadow a test of the upward sloping trend line near 11,200. However, in the near term, we are likely to endure a brief period of consolidation and/or retracement as the index digests the recent decline.
