This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity

FUNDAMENTAL ANALYSIS
The Dow ends its 5 days winning streak under heavy profit taking as CPI numbers match analysis expectations. Even though CPI numbers matched analysis expectations, it is a rise nonetheless and left investors disappointed and wondering if inflation is truly under control. The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator. Generally, a higher inflation figure offers support to the dollar as it suggests that US interest rates need to rise. That is what investors fear most now. However, we do see a bullish undercurrent as buyers stepped in during the last hour, lifting the Dow off its deep intraday low.

TECHNICAL ANALYSIS
The Dow ended in a huge hangman signal today. A hangman signal is a classical bearish signal that needs to be confirmed by a bearish followup. It is highly probable that this signal will turn the Dow down to the 30MA level as volume has been rising daily without any significant gain in the Dow, suggesting the presence of a resistance level. Certainly a tricky time to be trading.

The Star Trading System seems to echo the same bullish undercurrent with a significantly bigger number of morning star versus evening stars.

Thought For The Day : “Always Respect The Market”

This Stock Market Hours Report is brought to you by Jason Ng, Founder, Master ‘O’ Equity

The Dow is up again today by a marginal 20.57 points as early optimism due to a favorable PPI met with fierce profit taking towards the end of the day. The total PPI dropped for the first time since January, indicating a retreat in food and energy prices. This is definitely a great news especially with the FOMC release just round the corner. However, looking at the Dow technical chart, we see that the rally is indeed weakening over the days with smaller and smaller candles being formed. The huge surge in volume today also failed to bring the Dow significantly higher, indicating a possible short term ceiling. I see the 14000 level as a significant resistance level and a retreat from this level is not only acceptable but a welcomed move as the Dow is indeed somewhat short term overbought.

Thought For The Day : “Discipline And Patience Are The Hallmarks Of Every Successful Investor”