Brief Index Overview

Oct 14, 2007: 8:41 PM CST

The upcoming week is expected to be wrought with many earnings announcements from various companies, and so the week ahead could be volatile if there are some surprises in store.

Nevertheless, let’s take a graphic look at the current daily chart of the Major US Indexes:

The Dow:

Volume and momentum are declining as the ‘channel’ rally continues – this is bearish.

Volume surged on the ‘down’ day on Thursday – also bearish.

Price has stayed in the bounds of the narrow up-channel – bullish.

The NASDAQ:

The NASDAQ has remained strong thanks to RIMM, GOOG, AAPL and other technology related stocks.

The narrow upchannel is still in tact, and Thursday’s shock decline was halted at the lower channel boundary.

Momentum actually is strong and increasing, and price recently made a new momentum high – bullish.

Price is very extended away from the rising 20 period MA.

Volume has remained steady (to up) over the last month.

The S&P 500:

Price is ‘inches’ above the July all-time high and could be finding support there.

Volume is flattening, sending a neutral to bearish signal.

Volume is declining as price ascends a tight channel, which is relatively bearish.

The price level of 1,600 would be a strong psychological obstacle to overcome – it’s not far away.

Comments Off on Brief Index Overview

Comments are closed.