Weekly Report for Week Ending 5-02-2009

The stock market continues to resist pulling back but at the same time lives along the resistance zones for the indices of interest. We will go into those after the wrap-up.

U.S.

Dow => 8212.41, +136.12

Nasdaq => 1719.20, +24.91

S&P => 877.52, +11.29

Mine

NG => 2.77, +0.12

CVX QJ => 0.02, -0.03

FPL QH => 0.05, -0.05

In my introduction I mentioned that the indices of interest have been living along resistance zones. What does this mean. Well resistance zones are point levels on a chart where a stock or index has reached before and tried to extend above but was not able to. Usually these same resistance zones use to be support zones, the exact opposite. These resistance zones are given a general number but have some margin for error.

In the case of the Dow, the most recent resistance zone is the 8,300 point level. This is looking at a weekly chart. Prior to this, in the last quarter of 2008, 8,300 was a support level. Now for the past few weeks it has been running along this zone.

As for the Nasdaq, 1,750 is the resistance zone it has reached. This level was dropped through and challenged during the latter part of October 2008. Afterwards lower resistance levels were created and challenged.

Finally, the S&P is challenging the 900 point resistance zone it established back in December 2008.

Now there is even more indication that this most recent bull move is coming to an end. However, how fast it will reverse, and how far it will go is uncertain as there are a number of resistance levels that have been converted into support levels as it has climbed to recent heights. I am only suspecting a short pull back for most.

That is my opinion, you can take it or leave it.

Disclaimer: I am not a stock broker; I am not a financial advisor; I am not recommending to you what to buy or sell. I am just an opinionated investor. If you decide to follow in my footsteps you are taking risk. It is inevitable that I may be wrong. So if you are going to follow in my footsteps that is your own personal decision. I am not responsible for any loss that you may, and probably will, incur regardless of my opinion.