US Market Leads:
♦ US stocks staged a final hour recovery to end slightly higher on Friday amid speculation that the European Union
may propose a solution for Greece’s budget deficit over the weekend as well as renewed bargain-hunting activitiy
in US tech stocks.
♦ Earlier, the market succumbed to another round of fierce selling wave, with the DJIA plunging as much as 167-pt
as fears over fiscal instability in Greece, Spain and Portugal intensified. Investors worried the soverign debt
problems might spread to other European countries, which could threaten the global economic recovery pace.
♦ This overshadowed the earlier better-than-expected US jobs reports. It was reported that the unemployment rate
fell to 9.7% in Jan from 10.0% in Dec, versus the market consensus of 10.1%. But employers cut 20,000 jobs
from their payrolls, compared to the expectations of a flat number.
♦ Meanwhile, US light sweet crude oil futures for Mar delivery fell US$1.25 or 1.7% to US$71.19/barrel.


Technical Interpretations:
Dow Jones Industrial Average (DJIA)
♦ From falling as much as 167-pt to the lowest level since early Nov 2009 at 9,835.09, the US DJIA launched a late
recovery to end up to above the 10,000 psychological level. It inched up 10.05 pts or 0.10% to 10,012.23.
♦ At the close, it recorded a “dragonfly doji-like” candle, indicating a technical rebound could be in place today.
♦ Still, looking at the sluggish momentum readings, any rebound attempt could be weak with strong resistance
near the 10,150 support-turned-resistance level as well as the 21-day SMA of 10,381.
♦ On the other hand, renewed selling pressure will bring the US DJIA to retest last Friday’s low of 9,835 and the
9,700 lower support level soon.

By RHBinvest