These are last Friday, 20 February 2009, daily charts for Dow, Citi Group, Bank of America and AIG. All of them rebounded in the afternoon session after White House press secretary Robert Gibbs told press reporters "This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government. " "That's been our belief for quite some time and we continue to have that." However when he was pressed further on whether his comments meant the Obama administration would never nationalize the banks, he replied "I think I was very clear about the system that this country has and will continue to have." Can we take what he has said as a confirmation that the banks will not be nationalized by the government??To a certain extend the market has reacted to his comments positively in the afternoon.
" It seems like a really long time ago now, but it was less than a year and a half ago that the Dow Jones Industrial Average hit its all time high mark of 14198.10 on October 11, 2007. Those familiar with technical indicators will recall that a 50% retracement is a very significant mark for the direction of the market going forward. A 50% retracement from 0 to 14198 would put the Dow at 7099, and we came very close today(23Mac2009) with the intraday low at 7105. This support line could prove to be bullish; if the Dow holds these levels then from a technician's perspective it could prove to be a market low. However, beware if the Dow falls below 7100 because once that support is broken it could fall very quickly.
ReplyDeleteThe Dow Jones Industrial Average has not been at current levels since 1997, and the next few days could be key to understanding just how low it will fall. Tread very carefully in this sort of market environment." (Source: Seeking Alpha)
Chan, what is your comment on the above quote and is the rebound of DJIA last night (24 mac) an indication of bullish direction or is it still too early and need to observe a few more days