Re-Test!

So far, the AA possible swing top of last week seems to be holding up. It was challenged this week but broke down on Friday.

DIS, has taken a real pounding everyday the past week with no sign of letting up.

GE penetrated its 200 day ma (weekly chart). Not good.

JNJ appears to be finishing a 'pause that refreshes' before continuing further south.

There's a lot of damage among the Dow components which will take time to heal.

It's times such as these that one truely appreciates the words of Russell Sage, "The only sensible way to trade a market is to use a Call to protect a short sale and a Put to protect a long stock position." Sage advice, indeed.

Dow score card for the week ending 3/7/08.

DJ-30: 11893.69 -372.70 -3.04%. The Real World (arithmetical) DJ-30: 48.70 -1.52 -3.04%.

UP: 6, Down: 24.

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

Rising (Generally Higher Highs/Higher Lows) 0 (-5) 0%:

Consolidating (Generally Lower Highs/Higher Lows) 15 (N/C) 50%:

-*AA, -*CAT, -*CVX, DD, -*HPQ, -*IBM, INTC, JNJ, KO, +*MSFT, PG, T, VZ, WMT, XOM.

Declining (Generally Lower Highs/Lower Lows) 15 (+5) 50%:

-*AIG, AXP, -*BA, BAC, C, -*DIS, GE, GM, HD, JPM, -*MCD, -*MMM, MRK, -*PFE, UTX.

+/- denotes change of direction.

* denotes change of category.