Tuesday, February 05, 2008

Stocks Plunge



Stocks plunged today with the dow falling 370 points as investors fear the economy is sinking into recession.

Above is a chart of the dow jones industrials which I posted last week. Notice how the dow stalled right at key resistance and now appears to be heading lower. From a technical viewpoint the market is in a downtrend and is making lower highs and lower lows on the daily chart.

In my opinion, in order for the trend to turn from bearish to bullish, the dow would have to post a close above 12800. The dow closed today at 12265.

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