Stock Market Analysis

Thursday, May 18, 2006

Daily Market Comments 19 May 06 by

A very disappointing day in the markets yesterday. The market was extremely resilient for most part of the day to finally collaspe under presure to close down. DJIA was down once again by 0.69% and NASDAQ down by another 0.70%. There is still sure signs of the bearish spree coming to an end though from the slow down in decline and the decreasing number of decliners.

Technically, we see a very depressing picture. NASDAQ broke the 2,200 support level into the dangerous realm of the unknown. DJIA broke 11,200 support to head towards the 11,000 support. 2 areas of study gives us some light at the end of this gloomy tunnel though.

1. The VIX is at its high of last October again. When VIX was this high last October, the markets went into a 2 months rally. Will it happen again this time?

2. Pre market futures continue to point higher indicating an underlying bullish sentiment forming up.

But the markets have surprised us badly so far... lets see if we can be pleasantly surprised this time round.

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