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Summary for Week Ending 29th November 2002
Although the week was shortened by the Holiday, the market action was
a carry over from the previous week. Thursdays holiday and Fridays short
day essentially had the market moves for the week spent by Wednesday close.
There isn't too much to say this week as the markets behaved as expected.
Monday saw a down day which was confirmed by a strong down on Tuesday
where the market finished near the close of the day. The strong rally
on Wednesday saw the previous two day decline taken out and a new high
for the movement set, which held on the Friday half day, although it is
difficult to assign too much importance to Friday as there was virtually
no-one around.
From the technical perspective the primary interest was the correction
on Tuesday which saw the S&P dragged slightly back into the region
of the previous rally forward (18th Nov high). The DJIA and the NASDAQ
however managed to make a clean break, displaying that there is some strength
to this move up. although the DJIA and the S&P are creeping forward
as opposed to a normal rally as evidenced in the current NASDAQ move.
A strong consistent move to the upside may see this break out of this
pattern, but until then we can only assume that this behavior will continue.
Looking ahead to the coming week, as intimated in last weeks report we
can see from the charts that there is a clear upside rising trend line
supplying resistance. Applying the parallel line to the lows and the slow
rising channel is clearly defined. Looking at time, the next important
date is around Christmas and there is about 3 weeks to run. The initial
target was the Aug highs, and we are quickly approaching this level, so
we can expect some pull back from this level. Looking at minor support
levels, the Tuesday low is the first line of defense. I do not expect
anything complex on the downside..not just yet... only simple counter
trend movement.
Charts
DJIA The Chart this week is similar to last weeks. What
we are interested in is purely technical in nature.
S&P500 The Chart this week is similar to the DJI
chart. At present what we are looking at is basic technical indicators.
There is nothing advanced required to analyse this market at present.
NASDAQ The chart this week a basic rising channel and
the prospect of the possible upside resistance level coming off a trend
from the previous 2 major highs.
DJIA See
Chart
S&P 500 See
Chart
NASDAQ See
Chart
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