It was wild action on stock markets this week.

But I have to say that I feel that US markets  want to pause in declines. I have noticed several signs during this week which point me to this idea.

I noticed that SP500 and Nasdaq are not moving down too much. They are already in area of support levels. Only Dow Jones Industrial as weakest one is still dropping. But area around 10800 - 11000 should work as support area and stop this drop of DJIA.

The strongest is Nasdaq (based on relative strength measurement of my analysis) . You can notice that volume associated with bullish candlesticks is higher then with bearish. I feel it as signal that shorts are being covered.

And therefore I am preparing small longs in technology area in strongest sectors and strongest stocks.

This entry was posted on Saturday, July 12th, 2008 at 7:33 pm and is filed under Stock market comment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.