Wednesday, August 15, 2007

 
Daily Market Commentary
Courtesy of Nirvana Systems

Updated Tuesday, 8/14 for Wednesday's market.

Key DOW Levels for 8/15

UP

Above 13,400

DN

Below 12,975


Steady Decline...

- Dow trades slowly lower throughout session, breaks critical support. The Daily Chart says a whole lot about the direction we could be headed in the Dow. The Dow broke through the neck line of the large head-and-shoulders pattern at 13,150 and actually held beneath this level into the Close, which is the first time this has occurred around this zone. This is a bearish break that could result in a decline of about 600 points from our current level. Watch for movement below 13,000 for confirmation.

- The NASDAQ and S&P each pushed steadily lower throughout the day and are now testing key levels of support. These zones could spark the next key move in the market.

Summary

The Dow ended the day with a steady decline and is now holding beneath the neck line of the major H&S, which is highly bearish. Watch this level for signs that more selling could occur.

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