Nightly Index Overview

Feb 11, 2008: 7:20 PM CST

Let’s take a quick visual overview of some key market indexes and where they stand as of now.

First, the US Dow Jones Index (daily):

Classic technical analysis would be forecasting prices beneath 11,800 due to the perceived bear flag which has formed and has resolved halfway, but it seems like this hypothesis is currently in a little trouble.

Sellers have been unable to push price beneath 12,000, and the 12,100 level has served as a price rejection (support) line for the fourth time since late January. Can the sellers take it beneath this level? Or are the bulls finding new strength?

I pointed out the ‘hook up’ in momentum with a purple arrow. Remember that momentum often precedes price.

The S&P 500 is showing a near identical chart.

The Financial Sector was hit hardest today, with the XLF declining more than 2%. This is not bullish by any means (chart not shown).

The Hong Kong Hang Seng suffered another stunning decline today, after falling 5% yesterday.

Price seems almost destined to retest the 22,000 level, which represented a new price low on February 22nd.

Finally, the Commodity Index ($CRB) made another new high today (this is the weekly chart):

I mentioned in the last post how gold has made a new high. Other commodities are doing the same, as a result of reduced interest rates and a weak US Dollar. It looks like this trend will continue.

Rise above the temptation to look at only one market and view other related markets and analyze why they are related, and if you can find key trading ideas among them.

 

 

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3 Responses to “Nightly Index Overview”

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