Daily GJ Technical Analysis

daily chart
price has bounced off 213.00 support
three outside down pattern has formed
possible southward journey to 208.50
which coincides with bottom trendline and previous support areas
recommended SL: 213.25 (160 pips risk)
possible TP: 208.50 (320 pips reward)
R:R ratio 1:2

June 28 (Bloomberg) -- U.S. stocks slumped this week, pushing the Dow Jones Industrial Average to the brink of a bear market, on mounting concern that writedowns and record oil prices will keep eroding profit and economic growth.

JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. led financial stocks in the Standard & Poor's 500 Index to the fourth week of declines, the longest streak since 2005. Goldman Sachs Group Inc. recommended investors sell bank shares because credit losses will linger into 2009. United Parcel Service Inc. fell the most since July 2006 after saying profit will miss its prior forecast because fuel costs and an ``anemic'' economy reduced demand for air shipments.

The Standard & Poor's 500 Index dropped 3 percent to 1,278.38, a three-month low. The Dow average retreated 4.2 percent to 11,346.51 and needs to fall another 0.1 percent to complete a bear-market decline of 20 percent from its October record. The Nasdaq Composite Index lost 3.8 percent to 2,315.63.

Source: Bloomberg

June 27 (Bloomberg) -- The yen strengthened to a two-week high versus the dollar and advanced versus the euro as a slump in stock markets around the world reduced demand for higher- yielding assets funded by loans in Japan.

Japan's currency also erased a weekly decline against the euro as European Central Bank council member Miguel Angel Fernandez Ordonez said an interest-rate increase next week ``is not certain'' and a report showed confidence among European executives and consumers dropped this month. The Canadian dollar rose to a three-week high as oil surged to a record.

``A lot of investors are taking their cues from equities,'' said Sophia Drossos, a currency strategist at Morgan Stanley in New York. ``Sentiment seems to be damped on the renewed spike in oil and the global outlook.''

Source: Bloomberg

A breach of support at 211.6xx might signal a downward move
UPDATE: price reached a low of 210.75 (a potential gain 90 pips)
before went up to test the minor trendline
market closed at 211.71

June 26 (Bloomberg) -- Japan's stock futures rose after the Federal Reserve said risks to growth have diminished, raising optimism that the biggest export market for Japanese-made goods will avoid a recession.

U.S.-traded receipts of Toyota Motor Corp. gained 1.5 percent from the closing share price in Tokyo yesterday, while Honda Motor Co. climbed 1.3 percent. Sony Corp. added 1.3 percent.

Nikkei 225 Stock Average futures expiring in September last traded at 13,925 in Chicago, higher than the close of 13,880 in Osaka and 13,905 in Singapore yesterday. The Bank of New York Japan ADR Index, which tracks American depositary receipts of Japanese companies, gained 1.2 percent, as the Standard & Poor's 500 Index posted its biggest jump in two weeks.

``The gain in the U.S. market relieved concern among investors, though uncertainty about the external environment still remains,'' Mitsushige Akino, who manages the equivalent of $557 million at Ichiyoshi Investment Management Co. in Tokyo, said in an interview with Bloomberg Television.

Source: Bloomberg