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Thursday, January 17, 2008

Dow Jones in Focus

An update on our beloved Dow Jones, from chart, it appears to sit tightly at a turning point at the 12,400 mark especially when it close flat for the day yesterday 16th jan. Infering from the trend channels, it would appear that a rebound seems higher chance than another substantial selldown. However when it does happen(selldown) from here, 12,400 mark, it would be extremely bearish. Take note that overall, the Dow Jones industrial index is still stuck within a 6-month downtrend as seen by the downtrend channel til it disrupts the upper trend channel.

A 50% retracement up from 12,400 from the high of 13,780 gives us 13,094 , should the dow jones retraces back up to this level or even better the 61.8% level of 13,257, it would stand a really good chance to breakup from the downtrend. Take note though should it breaks down the upwards sloping channel line within the major downtrend channel.

On a side note, i wonder how long the local brokerages or the FTSE-SGX collaboration management going to give in to provding free singapore index feed on the internet platform. Interesting to note for once the local brokerages stands up united against SGX.