Directionless?

Directionless? One might think so, but one would be wrong. It looks from here to be in the process of preparing to test the 7/15 low on the weekly chart, as referenced last week.

CNBC's coverage of the Russian invasion of Georgia provides a backdrop for such a test, as if the market needs an excuse.

T moved upward on the week; so far so good.

VZ is forming a pennant, as significant trend lines are converging on the daily chart. Longer term, note the relationship to the 3/17 low. The battle lines are drawn.

Heads Up:

During the next two weeks, the following Dow components will report earnings. Keep a sharp eye for 'surprises'. You might be able to catch a nice swing in the week or two leading up to 'Earnings Day'.

8/19 - HD, HPQ, (Rescheduled).

Dow score card for the week ending 8/15/08.

DJ-30: 11659.90 -74.52 -0.63%. The Real World (arithmetical) DJ-30: 47.74 -0.30 -0.63%.

UP: 15, Down: 15.

Trends (weekly charts): This is the subjective part.

Rising (Generally Higher Highs/Higher Lows) 8 (-5) 27%:

+*DD, DIS, +*GE, HD, INTC, MMM, PFE, PG.

Consolidating (Generally Lower Highs/Higher Lows) 18 (+3) 60%:

+*AA, AXP, BA, BAC, C, CAT, CVX, GM, -*HPQ, -*JNJ, -*KO, -*MCD, MRK, -*MSFT, T, -*UTX, VZ, -*WMT.

Declining (Generally Lower Highs/Lower Lows) 4 (+2) 13%:

-*AIG, -*IBM, -*JPM, XOM.

+/- denotes change of direction.

* denotes change of category.

Comments? Ideas? Feedback? Let me have it, right between the eyes! I'd love to hear from you. Just reply to this zine and tell me what you think!

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