| 05/16/2010 |
Market Trend Is Down, Dow Downside Target: 10241
| Dow: | 10620.16 | Support: 10241 | Resistance: 10914 | Trading range: |
| Nasdaq: | 2346.85 | Support: 2217 | Resistance: 2420 | Trading range: |
| S&P 500: | 1135.68 | Support: 1100 | Resistance: 1175 | Trading range: |
Market Comments:
 |
Weekend News: 1. Greece may take legal actions against U.S. investment banks that might have contributed to the country's crisis, says PM Papandreou. In the U.S. 2. The ash cloud is back. Airspace may be partially closed in the U.K., Ireland and Germany "due to continuing volcanic activity in Iceland and prevailing weather conditions." Last month's airspace closures cost the industry $1.7B in lost sales. 3. BP Plc said it made a breakthrough today in its attempts to control oil leaking from a damaged well in the Gulf of Mexico, successfully creating a mile-long funnel to capture some of the flow and bring it to a ship on the water’s surface. 4. Money markets are showing rising levels of mistrust between Europe’s banks on concern that an almost $1 trillion bailout package won’t prevent a sovereign debt default that might trigger a breakup of the euro. For the week, all 3 major US market indexes closed up with the Dow up 239.73(+2.31％）， Nasdaq up 81.21(+3.58％）and the S&P 500 up 24.80(+2.23％）.June Oil was down $3.50(-4.66%)to $71.61 and June Gold was up $17.40(+1.44%) to $1227.80. US dollar index was up 1.90(+2.24%) to $86.45. Eventhough the US stock market was down sharply during the last 2 days of last week, the market is still up for the week due to big rebound in the first part of the week. The relief rally of the US stock market after European central bank and IMF announced a $1 trillion bail out plan for the European debt nations only lasted for 3 days. The market came down again after investors doubted the plan will work and the Euro against the US dollar dropped to 18 month low. The market will likely continue its downward trend this week due to: 1. Uncertainties are still with Euro area on both sovereign debt and economic growth which have been causing free fall of the Euro. 2. Criminal investigation in major investment banks and tighter regulations credit and debit card fees causing difficulties in operation . 3. Forth coming interest rate hike in China will likely curb global growth. 4. Oil price is on the verge of breaking below its 9 month trading range. 5. Chinese stock market is officially in bear market after dropping more than 20% from its previous top. 6. Major market indexes broke below their 50 day moving averages, market's short and intermediate term trends are down. The Dow will likely retest its 200 day moving average at 10234 this week. |
| ETF | Sectors | 20 DMA |
50 DMA |
200 DMA |
Comment |
|---|---|---|---|---|---|
| IGW | Semiconductors | B | B | A | Down Trend, Support: 46.23, Resistance:50.13 |
| IGV | Software | B | B | A | Down Trend, Support: 45.46, Resistance:49.07 |
| IBB | Biotech | B | B | A | Down Trend, Support：82.97， Resistance:88.65 |
| FDN | Internet | B | B | A | Down Trend, Support:24.23, Resistance:27.06 |
| PPH | Pharmaceutical | B | B | B | Down Trend,Support :61.09， Resistance:63.58 |
| XRT | Retail | B | B | A | Down Trend, Support：38.41，resistance:42.07 |
| RKH | Regional Banks | B | B | A | Down Trend, Support: 81.21，Resistance: 88.37 |
| IYZ | Telecomunication | B | B | A | Down Trend, Support: 19.01, Resistance:20.13 |
| XLE | Energy | B | B | B | Down Trend, Support:54.29, Resistance:58.60 |
| XLU | Utility | B | B | A | Down Trend, Support:28.68, Resistance: 30.15 |
| IGN | Networking | B | B | A | Down trend: Support:27.08, resistance: 29.25 |
| PBW | Clean Energy | B | B | B | Down trend, Support: 8.72, resistance:9.85 |
| XLI | Industrial | B | B | A | Down trend, Support:29.60, resistance:31.58 |
| XHB | Home builders | B | A | A | Down trend, Support: 17.73, resistance:18.60 |
| XLF | Financial | B | B | A | Down trend, Support: 14.93, resistance:16.06 |
| XLY | Consumer Discretion | B | B | A | Down trend, Support:31.63 resistance:33.61 |
| XLP | Consumer Staple | B | B | A | Down trend, Support:26.49, resistance:27.61 |
| XLK | Technology | B | B | A | Down trend, Support: 21.80, resistance:23.22 |
| IYM | Material | B | B | A | Down trend, Support:58.45 resistance:62.73 |
| MOO | Agribusiness | B | B | B | Down trend, Support: 38.59, resistance:41.90 |
| USO | Oil | B | B | B | Trending Range: 34-42, Danger of dropping below low of range |
| KOL | Coal | B | B | B | Down trend, Support: 32, resistance:36.46 |
| UNG | Natural Gas | A | A | B | Up trend, Support:7.24, resistance:8, Possible Round Bottomed |
| GLD | Gold | A | A | A | Up trend, Support：116.17，resistance:122.23 |
| SLV | Silver | A | A | A | Up trend, Support：18.11，resistance:19.44 |
| JJC | Copper | B | B | B | Down trend, Support：40.51，resistance:44.62 |
| RJZ | Metals | B | B | A | Down trend, Support：9.41，resistance:10.02 |
| RJA | All Agri-products | B | B | B | Down trend, Support：6.82，resistance:7.36 |
| DBA | Major Agri-products | B | B | B | Down trend, Support：22.37，resistance:25.27 |
| DBC | Energy, Metal, Agri | B | B | B | Down trend, Support：21.22，resistance:23.60 |
| TLT | 20+year Treasury | A | A | A | Up trend, Support: 92.84 , resistance:98 |
| JNK | High Yield Bond | B | B | A | Down trend, Support: 36.90， Resistance: 39.29 |
| FXE | Euro | B | B | B | Down trend, Support: 120, Resistance:125 |
| FXB | Pound | B | B | B | Down trend, Support: 140, Resistance: 150 |
| FXY | Yen | A | A | B | Up trend, Support: 106.34, Resistance: 108.70 |
| CAF | China A Share | B | B | B | Down trend, Support: 20, Resistance:27.83 |
| FXI | Xinhua 25 | B | B | B | Down trend, Support:37.44, Resistance:40.35 |
| EEM | Emerging Markets | B | B | B | Down trend, Support:36.58, Resistance:41.09 |
| BIK | BRIC 40 | B | B | B | Up trend, Support:22, Resistance:24.15 |
| IYT | Transportation | B | A | A | Down trend, Support:80, resistance: 80.27 |
| $VIX | Volitility Index | A | A | A | Up Trend, Support:24.04, Resistance:42.15 signals market turning down |
| GDX | Gold miners | A | A | A | Up trend, Support:50, Resistance:54.63 |
| FXA | Australian $ | B | B | B | Down trend, Support: 86.70, resistance:89.71 |
| SEA | Bulk Shipping | A | A | A | Up trend, Support: 15.66, resistance:16.44 |
| IAI | Brokerage | B | B | B | Down trend, Support:26.80, Resistance:28.09 |
| SLX | Steel | B | B | A | Down trend, Support:55, Resistance:63.15 |
| PSP | Listed Private Equity | B | B | B | Down trend, Support:9.48, Resistance:9.78 |
| XLV | Health Care | B | B | B | Down trend, Support:28.53, Resistance:30.37 |
| UUP | US dollar Index | A | A | A | Up trend, Support:25, Resistance:26 |
Earning Reports This Week: 5/17ADPT, FUQI, GA, HAUP, IVN, JSDA, NINE, ONSM, NCTY, 5/18ANF, GRO, ADI, CPSL, CTRP, CSKI, IMOS, DKS, EBMD, HPQ, HD, KIRK, SKS, TSTC, TJX, VOD, WMT, WUHN 5/19 EGHT, ABMD, AAP, AMAT, ADSK, BJ, BRC, CHS, KUN, CNTF, CTRN, DAC, DE, SOLR, GYMB, HRL, HOTT, LTD, NTES, PETM, RL, REDF, SNPS, TGT, VVTV, YTEX , 5/20ARO, BRCD, CSC, CPWR, DELL, DLTR, LONG, FMCN, FL, GME, INTU, KONG, PSUN, RAVN, CRM, PLCE, TDW,WSM, ZUMZ 5/21ATV, ANN, FRO, GPS, BIBB, TECD,
Economic Reports This Week: 5/18 Building Permits, PPI, Housing Starts. 5/19 CPI, 5/20 Initial Jobless Claims, Leading Indicators 5 / 18建築許可，生產者價格指數，房屋開工， 5 / 19 消費物價指數，5/20 首次失業人數，領先指標，