Wednesday, February 11, 2009

Dow Jones Industrial Average Breaks 8,000 Points On High Volume.

Early in the morning the Dow Jones Industrial Average was down -381.99 points to close at 7,888.88 points. A break of more than 100 points from the strong supporting level of 8,000 points. Nevertheless we still need to monitor tonight how the DJIA will fare ? It will be a crucial decision. Turnover was recorded at 8,091,152,500.

If the DJIA manage to climb back to 8,000 point than the story will be different. First hurdle of 7,796.17 point recorded on 02.02.2009 is the first level that the DJIA shouldn't break or else it will turn ugly and if the DJIA breaks that level, the next target will be the previous low 7,449.38 points recorded on 21.11.2008.

Yesterday investors dumped stocks after Treasury Secretary Geithner failed to deliver the specifics that investors sought from Treasury's financial rescue plan. During his speech, the DJIA started to tumble and move all the way down with a minus about -200 points. When his speech ended the index took another round of selling to fall more than -300 points before consolidate for a while and move down further another -400 points towards the closing.

Usually the U.S. market always reacted negatively when ever any of their financial guy given a speech about their financial system. It didn't happen once but it always happens every time. But with this huge falls, I don't think it will have a very big impact towards the Malaysian share market because our market already use to it already.

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