Dow Update

We have another disastrous week for the US market. The Dow Jones Industrial Average was down. The index fell from a closed of 11842 last Friday to close at 11346. The index has broken the lows established on 22 Jan 2008.

What is next for the market? The picture looks gloomy. With the Federal Reserve done with cutting interest rates and possibility of increasing it to fight inflation, the catalyst will not be coming from the Fed. If we can see a crash in the prices for oil and commodities, that will spark a recovery in the stock market. But “Hope” doesn’t bring in the money. It is safer to trade with the trend.

The phase chart is showing a Bearish bias towards the market.


The index moved into “Bearish” phase on 21 May 08 and has stayed there for 27 trading days. The picture doesn’t look good for the Bulls.