The Stock Market Week - 3/7/2008

All the major US indices were negative. For the week the Dow Jones Industrial Average dropped 372.70 points, or 3.04%. The Standard Poor's 500 Index dropped 37.26 points, or 2.80%, while the Nasdaq Composite dropped 58.99 points, or 2.60%. The Utilities sector was the strongest sector last week followed by the Consumer Staples sector. The Financial sector was the worst performing sector for the second week in a row followed by the Consumer Discretionary sector. The Basic Materials is the most overvalued sector for the forth week in a row while the Independent Oil Gas, Aluminum, and Oil Gas Drilling/Explor are among the most overvalued industries. Utilities is the most oversold sector followed by the Financial sector while the Publishing - Periodicals, Specialty Eateries, and Mortgage Investment are among the most oversold industries.

Nasdaq 100 Trust Shares (QQQQ) Trend Analysis - 3/7/2008

It was a negative week for the QQQQ. The QQQQ lost 2.05% for the week.

QQQQ Long-term technical analysis: The QQQQ is in the final stage of the first long-term wave down that started on October 31 2007. The wave is forming the five waves structure and the final fifth sub wave is in progress now. Usually the final wave down in the long-term trend characterized by oversold long-term technical indicators and the spreading fear in the stock market. Weekly William's Percentage Range (W%R) is strongly oversold and Lane's Stochastic (%D-Slow) is oversold. The analysts outlook for economy is gloomy and mass media spreads the fearful headlines: "Dangerous cracks in the nation's job market are deepening", "Employers slashed jobs by the largest amount in five years", "hundreds of thousands of people dropped out of the labor force", "recession bell is ringing". "The debate should no longer be about whether there is or is not a recession, only about how deep it will be" said Nigel Gault, chief economist at Global Insight. The fear forces investors to sell falling stocks near the market bottom. In the longer term the next wave down may occur during the summer and fall 2008 and take market much lower.

QQQQ - Long-Term Trend

QQQQ Short-term technical analysis: As we have discussed before, the QQQQ has been forming the symmetric triangle pattern since Jan.23. The triangle is completed and the downside breakout occurred on March 3rd. According to the triangle measurement, the projected target price is around 49.5. Daily William's Percentage Range (W%R) is oversold.

QQQQ - Short-Term Trend

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