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Wednesday's PricesUpdate #694 July 24, 2007
PRINTABLE VERSION
Instructions for Wednesday: With the Dow having corrected over 200 points Tuesday, we must allow a day for prices to consolidate and allow a more attractive entry point. Coming into Tuesday we were looking for the Dow to pull back and thoroughly test support. The action was expected to complete a corrective move that has been underway for almost a week and a half. However, an afternoon reaction to comments from Country Wide Financial spooked the market and suddenly the deluge was on. The Dow pulled back below 13,800, a key level we were watching, but it never rallied back. Tuesday was a rare 2% down day for the S&P 500, and unfortunately, we should expect to see more of them in the months ahead as it is clear the market is returning to a more normal / typical level of volatility. But at the end of the day, the market has become oversold and we are alert for a bottom to develop near-term. Dow heavyweight BA reports earnings before Wednesday's open with MMM and XOM set to report on Thursday morning. At that point over two thirds of the Dow will have reported earnings and we will be able to put the earnings wild card somewhat behind us. Jim Patterson. If you questions, please send them to editorial@dowdoublediamond.com I try to answer all emails within 48 hours; however, sometimes it takes a little longer, and once in a while an email gets lost. If you don't hear from me in 4 days, please write again. Thanks! * The ticker for the September E-Mini eCBOT Dow $5 contract is YMU7 |
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