Saturday, November 22, 2008

Dow Jones Industrial Average In Safe Position ?

Dow Jones Industrial Average managed to climb back to close above its strong supporting level at 7,882.51 points. An indication that DJIA is entering into a safe zone while still trying to make an adjustment from recently steep falls. Yesterday world financial equity market in Asia are performing well even though the DJIA tumble -444.99 points.

Yesterday the DJIA shot up +494.13 points; well above 8,000 points to close at 8,046.42 points. The surge was supported by relatively heavy volume with nearly 10,681,747,000 shares traded hands on the New York Stock Exchange.

Those heavy losses prompted bargain hunters to bid stocks higher. Whether the push was merely rooted in short-term interest or marked a true turning point for the stock market will only be seen in time.

No doubt the DJIA breaks the new low just for one day only and climb back on the second day still we need to pay a bit of attention what would be the next course for DJIA ? If DJIA managed to stay at these level for few more days until end of the month of November than it would be great for the KL Composite Index to adjust it movement for a possibility of Chinese New Year rally in the month of December or January.

Yesterday movement of a late surge by KL Composite Index was merely a technical rebound after 4 days of decline and the movement was also in tandem with Asian share market late surge.

No comments: