Ian Woodward's Investing Blog

Prior to the Market opening this week I said in my Musings note of the 22^nd July (see notes below) that we were probably due for a down week.  Sad to say it happened. 

For your convenience I show the table below of then and now (shown in red)

The Market Indexes finished the week on a sour note, particularly in the last hour when they sold off heavily.  Both Google and Caterpillar reported disappointing earnings. This suggests that the Markets may have more on the downside at the start of the week. 

 

Six important things to watch going into this week (23July):                                     

                                                                                                                            26July

1.  The Down Jones Transportation Index – Must hold at 5225 and bounce up        5069.43

2. The Philadelphia Semiconductor Index – Must hold at 535                                 511.94
3. The Nasdaq 100 Index – Must stay above 1995                                               1970.97
4. The Volatility Index – Must come back down below 15.00                                    21.65
5. The 10 Year Bond Yield Index– Must stay below 49.50                                       47.92
6. Watch GOOG, RIMM, AAPL and FSLR – Must hold with minor loss.
7. As we can see only one item is not broken…the Ten Year Bond Yield (TNX), which will be good for equities but bad for the bonds.  The triple A’s are running into trouble.

    

   The $64 question now is what’s next.  The answer is simple…the numbers shown above must quickly turn back above the “Lines in the Sand” or we are headed down for a decent correction and a further clean out.

    

   The Twenty Stocks I recently follow shows the Index has turned down drastically, so all-in-all we have a bleak outlook:

    

This entry was posted on Thursday, July 26th, 2007 at 2:59 pm and is filed under Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.