Stock Market Analysis

Sunday, May 07, 2006

Daily Market Comments 8 May 06 by

The strength in the markets continued last Friday with DJIA closing up significantly by 1.21% and NASDAQ up by 0.8% giving an overall weekly gain of 1.05% for DJIA and 0.4% for NASDAQ. Overall, the DJIA was bullish last week while NASDAQ was neutral at best. So much for all the great economic data. The indexes have done extremely well on those data and a controlled oil price. The ETF for oil, USO, continue to fall for a third consecutive day down to its $68.00 support level. It will not be surprising if oil starts to move up again from this point. In fact, this is a good point to buy in on oil using the USO ETF. Lets see if the bullish sentiments can persist this week.

Technically, DJIA did a upside breakout last Friday. That breakout broke the sideways movement that the DJIA have been doing all week. This breakout allowed the DJIA to continue its "basket ball" movement to upside bouncing off the 30MA everytime. It sure does look like it is going to do the same again soon and so a slight correction to downside will not be surprising. Overall, DJIA is maintaining a rising trend line and a rising channel line which is very healthy for a bullish market. NASDAQ continue its upwards movement within the 2,300 , 2,360 channel without surprise. We should see it moving up towards the 2360 mark before a slight correction happens. Overall, the sentiments on both indexes are still bullish and a few more days of upside should not be surprising if the possible rise in oil prices do not put too much pressure on the markets.

FREEBIES FOR TRADERS : FREE 7 days Trial Of Our Explosive Stock Pick Service!

Links to this post:

Create a Link

<< Home