Another test for major indexe

4/24/08

Today the Financial and Banking stocks helped life the stock market. Dow was able to climb higher intraday to 12942 before it closed 12849 which slightly below last friday closing highs. But the broader S&P was hitting the heavy resistance zone 1400-1410, still unable breakout higher or precisely closing higher. The choppy advance over the past few months is simply allowing stocks to correct the rapid decline from the 10/2007 highs. Unless the major indexes can decisively breakout above their primary downtrend lines ( and 200days moving average ), this market is likely to begin moving lower over time. I would not be surprised by another short term rally attempt over the next few days. Let see how market turn out tomorrow with good earning report come Microsoft and Baidu.

Becareful another bulls trap

4/21/08

Bank of England bail out their banks on garbage(Mortgage-back securities). It only means to me that Credit Crunch is not behind us. In fact, the worst has not yet to come. This morning, Bank of America profit has wiped out almost 80% and National City bank need raised $7 billion. I expect lots of these actions are going to take place for the rest of this year. Banks are out of capital they need to stay above water. Soon enough, we would hear Citigroup would raise another round of $$ . Technically, banking sector index has been bearish downtrend and have not break the downtrend pattern yet even major indexes were rising recent days. Watch out folks, this maybe a bull trap that market going to teach us a lesson. Dow is really breaking the initial range resistance 12750-12800 but need few more days to see. But S&P has not yet break above the range resistance zone yet. Let see how today (monday) closing.