Monday, August 07, 2006
Daily Market Commentary
Updated Friday, 8/4 for Monday's market
Massive Reversal
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Updated Friday, 8/4 for Monday's market
| Key DOW Levels for 8/7 | |
| UP | Above 11,350 |
| DN | Below 11,175 |
Massive Reversal
- Dow rallies at Open, but gets huge sell-off from early highs. The index got a sharp v-top reversal from the day's highs and proceeded to sell off 160 points in steep and steady fashion. The index bounced late in the day and eventually closed the session with just a 2 point loss, but we could see much more selling ahead.
- The NASDAQ and S&P each reversed sharply from opening highs and could be headed much lower if key lower trend lines are violated. Watch these lines early next week.
Summary
The Dow got a massive downside reversal after racing to new highs right at the beginning of the session. This does not bode well for the bulls and could become the top of another bearish decline back to 10,700. Watch the key lower trend line at 11,175 for early weakness Monday.
- The NASDAQ and S&P each reversed sharply from opening highs and could be headed much lower if key lower trend lines are violated. Watch these lines early next week.
Summary
The Dow got a massive downside reversal after racing to new highs right at the beginning of the session. This does not bode well for the bulls and could become the top of another bearish decline back to 10,700. Watch the key lower trend line at 11,175 for early weakness Monday.
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