Monday, November 2, 2009

20091102 1623 DJIA EOD Daily Chart Study.

Seems like another old critical illness send Uncle Sam back to the hospital for medical attention right after discharged from the hospital. Ended at 9712.73, down 249.85 as the same old fear come back to the market with CIT filling for chapter 11 protection reminded traders of the previous bailout scenario. Chart wise the long black bar candle do look scary chopping right down the mid Bollinger band with high volume traded = the bearish sentiment is damn significant due to the previous bailout market fear. Bollinger band width just started to expand = the side way market may has ended and started to turned negative. MACD Histrogram also slipped down = heavy long covering and also short seller come into the market. However due to last Friday severe and panic fall of the marker, we might see some stabilisation process take place after market have digested the bad news over ther weekend. Overall market do looks bearish chart wise but not yet confirmed with immediate support at 9630 followed by 9450.     

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