Editor's note:
this column was originally published on Capital Essence's CEM News on November 22, 2007. It's being republished as a bonus for the loyal readers. For more information about subscribing to CEM News, please click here.
Good Morning. This is Capital Essence's "Market Outlook" (the technical analysis of financial markets) for Friday November 23, 2007.
As we've predicted right here in the
previous market outlook that: "
the bears still have the benefit of the doubts", stocks stumbled out of gate Wednesday as investor refused to hold long positions going into the Thanksgiving holiday.
For the day, the Dow lost -211.10 pints to finish at 12,799.04.
The S&P dropped -22.93 point to close at 1,416.77.
In observance of the Thanksgiving holiday, US stock and bond markets will be closed at 13:00 ET on Friday November 23, 2007.
Chart 1.1: Standard & Poors 500 Index.
As expected, the board market index is on its way to test key support around the area of August's low. Short-term resistant is about 1490-1500.
Chart 1.2: Dow Jones Industrial.
The blue-chips index closed below August's closing low on Wednesday and hence reconfirmed a test of key support at the 12500 level. Resistant is about 13350.
In summary: technically speaking, the market is in a very bad shape after Wednesday's decline. Though trading action will be relative "dry" Friday as a majority of market participants are away for the long weekend holiday. And we're, therefore, not expecting any interesting "stuffs" to happen during the last shortened session of the week. It could be just another meaningless holiday trading session.
(By: Michelle Mai for Capital Essence)
Note: Michelle Mai writes technical analysis for Capital Essence and is the editor of Capital Essence's "Market Outlook" newsletter. To receive the daily edition, please
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