US market in for more bearish pressure - heading towards 6000

The US market sentiment continue to deteriorate as investors have no confidence on the new US$787 billion package which are set to bailout out companies that are facing financial difficulties. The Dow Jones industrial average (DJI) tumbled 251 points or 3.4% to its lowest close since May 7, 1997, bring stock market back to 12 years ago. It broke the major support level at 7,400 points. With this breakout on the major support level, more bearish pressure is expected in the US.

Excerpt from Yahoo:

"Investors pounded most financial stocks even as government agencies led by the Treasury Department said they would launch a revamped bank rescue program this week. The plan includes the option of increasing government ownership in financial institutions without having to pour more taxpayer money into them.

Although the government has said it doesn't want to nationalize banks, many investors are clearly still concerned that this could be a possibility as banks continue to suffer severe losses because of the recession. They're also worried that banks' losses will keep escalating as the recession sends more borrowers into default."

Daily DJI chart as at 23 February 2009 using NextVIEW Advisor. Click on chart for larger view.

The DJI is expected to find the next support level at between 5,600 and 6,000 points as forecasted by market experts Benny Lee and Daryl Guppy in N.I.N.E. Markets in the Asian region are expected to be bearish today with the poor performance in the US.

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N.I.N.E.