Editor’s note: this column was originally published on Capital Essence’s CEM News on September 27, 2007. It’s being republished as a bonus for the loyal readers. For more information about subscribing to CEM News, please click here.
Good Morning. This is Capital Essence’s “Market Outlook” (the technical analysis of financial markets) for Friday September 28, 2007.
As we’ve predicted in the previous Market Outlook: “short-term outlook is bullish until proven otherwise” – equity market proved to be resilient Thursday, finishing moderately higher in the face of mixed economic news and high oil prices. The Dow gained 34 points for the day to finish at 13912. It worth notice that the blue-chip index is about 100 points to an all-time high of 14021.95 recorded on July 17, 2007. The S&P 500 Index added about 6 points to finish at 1531. General speaking, today trading action had not only confirmed but also enhanced the already bullish outlook.
One stock that jumped up on the day was Immersion Corporation (IMMR) – a long holding in our “Swing Trader Bulletin” Portfolio. Shares of the computer peripherals maker rocketed more than +14% Thursday amid a new wave of aggressive buying.
The Standard & Poors 500 Index (daily) chart above addresses a short-term time frame. As expected, the index followed through to the upside on the heel of yesterday bullish breakout from the small pennant. As a matter of fact, things could still little sloppy in this area though an advance to above the 1540 level, especially a clear breakout above 1,555 would set the stage for an explosion higher, possibly into the 1630 area.
The Dow Jones Industrials Average (daily) chart above addresses a short-term time frame. The blue-chip index continues to base sideway near high. In fact, today trading action is considered bullish given the overbought condition. As noted above, the index is about a hundred points away from the all-time high. Apparently, the target is just too tempting for traders to resist. With that said, there is a high probability for a move toward the 14K before the third quarter’s window closes.
Bottom line: Thursday’s trading action suggests that the bulls still in charge. Although bear in mind that tomorrow is the third quarter’s last trading session and if the bulls fail to impress investors on this very day, expect things to get really naughty for the rest of the year.
Until next time, good luck.
(By: Michelle Mai for Capital Essence)
Note: Michelle Mai writes technical analysis for Capital Essence and is the editor of Capital Essence’s “Market Outlook” newsletter. To receive the daily edition, please subscribe. It’s now available at a monthly rate.
