Friday, October 02, 2009

Market summary for week ending Oct. 2nd

Well the stock market closed the week down for the Dow, Nasdaq and S&P 500. I have provided 2 charts. The first is from week ending Sept. 26th and the second is this weeks. You can see that while we have dropped this week, we by no means dropped enough to show any new predictions. We stayed between the 2 blue lines going closer to the one on the bottom of the range. You can see it is going to take yet another week or two before any clear determination can be made as to future direction. The Bears were celebrating after the higher Unemployment numbers came out today following lower ISM numbers earlier in this week. But their celebration was short lived as the market surprised most and was actually in the green for a significant portion of the day before closing down.

I had said back in August that the correction would come by the 3rd Friday of the month and this could be when we really know what is going to be the trend. And with each passing day the trend line from the highs of a 3 year chart of the Dow keeps butting up against the upper blue trend line. On the Uptrend line, the lower Blue line, if we break below that line we most likely will correct down to the 7,800-8,000 level. Now we just wait and see what the future will be. There isn't much news coming this week to bolster the Bulls case. And there is always the possibility of a negative surprise moving the markets lower. It doesn't have to be news from America but from anywhere in the world. Have a nice weekend.

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