Gravestone Doji on DOW

6/25/08

As expected that the FOMC decided today to keep its target for the federal funds rate at 2%. I am not going to reprint the content of the FOMC decision. The closing of Dow and S&P are tellings the bearish story. Technically, Dow settled the date as gravestone doji candlestick pattern with the third trendless trading days. It means the trend is still unclear. Is 11740 is recent bottom of Dow? I do not know but soon the market would give us an answer. But I could say the stock market still remain bearish with bias going down. Since if this 3 days level support got broken(same support levels as Jan and March lows of Dow), it would be very bad. After market close, RIMM posted disappointed earning result and also lower the earning estimate for coming quarter. Well, Rimm as one of the stock market strong leader got wreck and it sure would give bearish tone on Tech stocks tomorrow. The nasdaq, tech sector has been strong recently compared with Dow, NYSE, S&P other sector indexe. Let keep wait and see how tomorrow trading day turn out.