DJI Review - First in 2008

Philippine market has always been mirroring US market sentiments, so to understand things clearly from US Market point of view, Let us discuss what's happening base on the charts.
So we could put time and targets on the things that worry us.




US Market View from afar. It was Bullish from 1995 - 1998, Bearish from 1999 - 2002 while from 2003 - Present the Trendline is still intact.




If the strong Trendline that was established from 2003 is broken at around 12,143, that should make us worry, because that means the bulls are declaring losses and the bears take over. We have to watch out for this. The Chart's Volatility is just so great but still we have to be thankful that the trendline is still intact.




If we take a closer look from July 2007 - Present, DJI is moving in consolidation on an upward channel. Some see it as double top, it does not look like a perfect double top for me, so I would consider it as a upward channel than a double top. It has to maintain in this channel to stay sideways and it has to break the resistances through 14K level to resume the bulls.

Will the Bulls continue? As long as the long term support is not broken, I still consider the bulls alive. But we have to break the resistances to move further.

Watch over your trades and be responsible on the hard-earned money you are investing/trading.