Wednesday, August 6, 2008

Markets Inch Higher After Early Sell Off - Nasdaq Up Strong

DJIA + 40.30, +0.35% SP500 + 4.31, +0.34% NASDAQ Comp. + 28.54, +1.21% Russell 2000 + 4.86, +0.67% NYSE NASD Advancing 1,687 1,685 Declining 1,383 1,191 Oil $118.58 -$0.59 Gold $886.10 -$3.10 $SOX 354.20 +3.87 Strongest Sectors: XLE +2.28%...XLI +1.91%...XLK +1.91% Weakest Sectors: XLF -1.02%...XLY -0.50%...XLV +0.39% The markets opened down on weak earnings from Freddie Mac (FRE) which reported a larger than expected loss of $821 million. FRE was down 19.28%. PCLN had gapped down Tuesday evening on earnings. Broad markets rallied and closed positive for the day. Fannie Mae (FNM) reports earnings Thursday morning before the open Index Commentary The DJIA stayed above S1 of Tuesday large white candle and then moved higher closing near its 50 DMA…if Tuesday’s break above 11, 600 holds the new chart target is 11,951. The SPX also stayed above Tuesday’s S1 level and moved closer to its 50 DMA…if Tuesday’s breakout of 1,284 holds the new chart target is 1,321. The Nasdaq was the strongest of the broad indices and closed above it 50 DMA for the first time since early June…broke soundly above horizontal resistance at 2,350…new chart target is 2,440 The RUT formed another new high close and closed above its 200 DMA for the first time since early June…since the RUT has closed only two days above its 200 DMA since last November we will watch this breakout very closely to see if it holds…if it does it suggests higher prices…a successful break above 726 will suggest a new short-term chart target of 758. Stock Commentary BIDU a bull flag support bounce POT a counter trend support bounce FWLT a morning star pattern at major support RIMM breakout after bull flag support bounce yesterday BUCY a morning star pattern at support FSLR a bullish engulfing pattern at support in a sideways trend AGU a morning star pattern after earnings in a downtrend near its 200 DMA AAPL a breakout following a support bounce Tuesday, stalling at its 30 DMA and closing at its 20 and 200 DMA Wednesday's Action Moving Up: BIDU, POT, FWLT, RIMM, BUCY, FSLR, AGU, CNX, DRYS, AAPL, MTL, BTU, GRMN, ANR, MOS, MON, IPI, SOHU, NUE, SCHN, CF, X, CLF, IBM Moving Down: PCLN, MA, MEE, V, FNM, STRA, FRE, DECK, GS, AMZN, EXPE Intermediate Term Market Trend: Neutral Short Term Market Trend: Up

2 comments:

Anonymous said...

Dave,
As always thanks for sharing your insights with us.
Derek

Dave Johnson said...

Derek,

You're welcome.

Dave