MARKET COMMENTARY

The market ended the day higher, but the week a big loser. There is no trading on Friday due to US Independence Day. The trading will only resume the next Monday. The rebound is weak considering the fact that the markets had been battered badly for the week prior to the rebound.

So, what do we have? Remember, whenever you are lost in reading the chart, you can always change the chart to a higher degree for information. This time I will be showing you the weekly chart of the Dow. Do note that I had cautioned a possible rebound of all the major indexes. So far, it has not happened yet. But if you look at the weekly chart, we can see that there is a Doji formed outside the Bollinger Band. Although it is possible for the Dow to continue to go lower, it is more probable to see an immediate rebound next week, forming a Morning Star candlestick pattern on its weekly chart. But then again, any rebound can be short lived.

In the medium term, the markets are all expected to head down. This scenario is depicted in all the weekly charts of the indexes. Be very careful when trading the rebound.

DJIA Weekly Chart

The resistance for SPX weekly chart is expected to be around 1350. Catch the reversal from near here.

SPX Weekly Chart

Nasdaq’s resistance is at 1950. But this index may not follow the Dow and the S&P. The chart is not as bearish or oversold as the Dow and S&P. Even the daily chart does not show that the market is oversold. Hence, we have a slightly uncorrelated markets with the Nasdaq. You may hold on to any open position but do not create ones.

NDX Weekly Chart

STOCKS TO WATCH:

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