Monday, November 3, 2008

WEEKLY TECHNICAL COMMENTARY


THIS WEEK’S ISSUE:
• Market Commentary: DJIA, S&P 500, NASDAQ, RUSSELL 2K

• Industry Analysis

• This Week’s Economic & Earnings Reports


U.S. FUTURES (as of 4:40AM EST): DJIA (+0.49%), SPX (+0.41%), COMP (+0.36%)


MARKET COMMENTARY – INDU 9,325.01, SPX 968.75.77, COMP 1,720.95. RUT 537.52


We have successfully broken out of the descending triangle and the 20-day MA. The DJIA is testing its October 13-14 short-term highs, and the SPX, COMP, and RUT are all testing their Oct 20 highs. I will be long, at least for the beginning of this week, and see where the election week takes us. Many sectors and stocks have also broken out of consolidation patterns, most commonly the double-bottom, rounded-bottom, ascending-descending-symmetrical triangles, bullish wedges, and Adam-Eve bottoms. I found it extremely rare to find stocks that did not move with the market. We should see a continuation in this rally, but the elections could change my opinion. Volume remains “average” and if a breakout does occur, I expect above average volume to confirm price action.


INDUSTRY ANALYSIS























THIS WEEK’S WATCH:
• The Election
• This weeks economic reports

• Support & resistance testing, consolidation in the markets

Noteworthy Economic Reports: Mon. (ISM Manufacturing Index -10:00AM, Construction Spending – 10:00AM), Tues. (ISCS-Goldman Store Sales – 7:45AM, Factory Orders – 10:00AM), Wed. (MBA Purchase Applications – 7:00AM, ADP Employment – 8:15AM, Challenger Job-Cut Report – 7:30AM, ISM Non-Manufacturing Survey -10:00AM. EIA Petroleum – 10:35AM), Thurs. (Chain Store Sales, Monster Employment – 6:00AM, Jobless Claims – 8:30AM, Productivity/Costs – 8:30AM), Fri. (Employment Situation – 8:30AM, Pending Home Sales – 10:00AM, Consumer Credit – 3:00PM)

Noteworthy Earnings Reports (planned): You can find at the complete list here: http://www.rightline.net/calendar/index.html.

Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

No comments: