MARKET COMMENTARY

The financial market has sunk again, lost over 239 points. This is within our expectation of a continual bearish trend. More bearish moves are expected and will probably break below the support as indicated in the chart below. More equity stocks are going to see further losses in the days ahead. The financial sentiment should be seriously dampened when that moment arrives.

The continuing poor market condition is real and probable. Both the Dow and the S&P charts are not oversold after the much anticipated rebound last week. Therefore, they have plenty of rooms to move lower. At this moment, there is little defense for the bears to hit as I don’t expect positive news, if any, to make significant impact on the market. Certainly, there will be small rebounds coming along as the market drops, but they won’t be bullish in nature.

The crude oil is on the rebound phase as I have mentioned previously. Market commentators attribute the rise in oil price to Nigeria’s pipeline attack. This is just coincident. As far as the chart is concerned, the crude is just making a rebound. The crude should complete its rebound soon and will resume the bearish move.

DJIA Daily Chart

I want to continue to monitor the Russell 2000 (RUT). This index tells me that it is rather resilient. After making much advance recently, it has not made bigger loss as I expected. With the 200-day moving average lying just below the price, it is possible that the index will move sideways instead of going downhill. Let’s find out in a day or two.

RUT Daily Chart

The Nasdaq gave up a lot of gains yesterday. Although it may continue to go sideways, the breakout of support is still highly possible and anticipated.

NDX Daily Chart

STOCKS TO WATCH:

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