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

The Dow corrected back down by 125.35 points last week, back on top of the weekly 30MA line. The Dow has been fiddling right on top of this critical support line for the last 3 weeks, is this normal? Well, I must say it is normal. Looking back at 5 March 2007, the Dow demonstrated almost the exact same behavior of correcting down to the 30MA line and then fiddling right on top of it for 4 weeks before the rally actually begins. Will we get a rebound on Monday like we saw back on 29 August when the market ditched on 28 August…. just like it did last Friday?

The market continue to be extremely turbulent… a little like what we experienced back in March, only a lot more volatile and a lot longer. During such times, we must be patient and understand why the Star Trading System is not giving us any qualifiers.

Thought For The Day : “Every Morning Marks A Brand New Beginning”

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

FUNDAMENTAL ANALYSIS
Is it even surprising to see pending home sales hitting multi-years low when so many has been hurt in the last home rush? Is it even surprising to not get a hint of a rate cut out of the Fed beige book when I have explained the way Bernanke works yesterday? Is it even surprising to get a 143.39 points retreat in the Dow when it has moved more than 600 points since the rally begun back at 17 Aug? Enough said. Nothing has actually changed in the economy and nothing new has happened. The only thing that actually happened is that no miracles happened in yesterday’s releases. All the numbers and news merely confirmed what we already know about the current situation. So what’s the fuss? I don’t really know. I guess some people just need to take some profit at this point.

TECHNICAL ANALYSIS
About time someone take some profit off the table as the Dow enters short term overbought. The Dow’s small retreat of 143.39 points is marked by a retreating volume, suggesting that the move is not a trend changing one. Today’s retreat put the Dow back on top of it’s daily 30MA line again. That line was a resistance level just a few days ago and now, it needs to prove that it has become a support level by having the Dow bounce off and up tomorrow. If the Dow fall back down and close below the 30MA line, then we might see more sideways actions before a real rally begins.

The turbulence continues as the Star Trading System are flooded us with evening stars today… let’s see what we have.

Thought For The Day : “Rules Are The Chains Within Which One’s Emotions Must Be Contained”