Market Talk / August 10 - 16

[Spaf]

Market Talk
Sunday Edition
August 10, 2008​

General Commentary:

Oh, a precarious breakout. Last week on Friday, by a fair drop in oil prices, the market, namely the S&P, made a breakout of the trading range. Resistance was at 1291. The S&P broke through and stopped at 1296, a mere 5 points above the trading range. Remember this advance was on a slide in oil, not a stock leader. And, the week was markedly volatile.

A breakout needs a few days for confirmation, because sometimes a breakout will fall back into the trading range i.e., profit taking. And, oil is hard to consider oil a real catalist, with the known factors that can effect it.

A look at the chart(s)
The S&P500 [$SPX] Daily
Large Caps

Charts courtesy of www.StockCharts.com​

The E-moving average was breached, but by a mere 2.73 points.

The P-SAR is bullish.

The S-STO is in a oversold range of 83.

The MACD has a good upward positive divergence.

Well, that's it for the weekend!​

Be careful out there!​

 

[Spaf]

Monday Aug. 11

S&P closed out at 1305 +9.00 points.

 

[Spaf]

Tuesday Aug. 12

S&P Closed out at 1289.59 -15.83 points.

Financial credit troubles deflated stocks.

How this will effect the precarious breakout is not known......:notrust:

 

[Spaf]

Wednesday Aug. 13

S&P Closed out at 1285.83 -3.76 points.

Well this puts some sour grapes on the precarious breakout mentioned in post # 1.

The market didn't have the strength to maintain the ever so slight break out of resistance (S&P 1291). So it's back to the trading range. I guess the pressure by financials and oil was just too much.......

 

[luv2read]

Financial News
...the Federal Trade Comission has released a statement stating those involved with manipulations in the markets will face high fines. William Fleckenstein, president of Fleckenstein Capital, said the problems in the financials will not go away anytime soon. He said there has been “too much leverage” and bad credit conditions, which will continue to weigh down the financial sector. Ratigan brought up the U.S. dollar rolling over during market hours. Seymour believes there is no reason to see the dollar bounce back to the upside unless investors take into account the weakness occurring abroad. Overall, he is bearish on the dollar.

http://seekingalpha.com/article/90833-oil-rebounds-fast-money-recap-8-13-08

 

[Spaf]

Well, that's all for this week, see ya next!​

Spaf​