Stock Market Analysis

Thursday, September 13, 2007

Dow Challenges 50MA Resistance...


FUNDAMENTAL ANALYSIS
The Dow RALLIED 133.23 points today as credit fears relaxes. This is the second time the Dow has gained over 100 points this week, making this the most delightful week in a long time... so far. Investors are greeted by a lower annual average mortgage rate and CountryWide, US's largest mortgage lender, securing 12 billion in credit. These news assured investors that the credit crunch may not be as bad as the media has made it to sound so far. These series of large gains this week could also be the pricing in of a possible rate cut next Wednesday... which of course could lead to a huge disappointment and a correction should the rate cut not come... all in all, all eyes are still on the rate cut and new money should still sit on the sidelines.

TECHNICAL ANALYSIS
The Dow made it to the daily 50MA resistance level at last on rising bullish momentum. Tomorrow will be the day of reckoning... failing at this level tomorrow could put the Dow back down into a bear channel. So far, the Dow looks good to make a break as it displays healthy bullish momentum on the short and mid term charts.


DOW Technical Chart By Best Charting Software TC2007!

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