Quick Market Overview

Apr 13, 2008: 4:02 PM CST

Let’s take a quick peek at the US Dow Jones Index and what may be in store for next week:

The market has broken beneath key support coming from the flattening of the 20 and 50 period moving average, as well as the bottom trendline of an ascending triangle pattern.

The market is in an overall consolidation phase at the moment, and it wouldn’t surprise me at all to see a little more downside – perhaps at least to 12,000.

There appears to be strong resistance at the 12,800 level, and relatively strong support about the 11,800 level, giving us a 1,000 point range.

Let’s also take a quick glance at the AMEX SPDR sector performance over the last week:

The biggest loser was the Industrial Sector (-5%) followed by the Financial Sector (-4.5%).

Only two sectors gained ground last week – Energy (+0.25%) and Utilities (+0.26%).

The broad based S&P 500 index lost 2.74% last week.

Here’s a peek of the Dow Jones Weekly Chart:

Again, resistance comes in about the 12,800 level, only now the weekly chart shows key resistance via the 20 and 50 period moving averages.

If the market travels lower, key support may come in between 11,500 and 11,750 via the 200 period moving average and previous support.

Let’s keep our risk low and see what the market gives us this week!

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