The Philippine stock market has been in a slump as a reaction to the US financial crisis. DJI, the U.S. market’s major stock index, had been tremendously declining for quite some time now. As we can see in the chart, DJIbroke down from a head and shoulders formation (3 arcs: The head is the biggest red arc and the shoulders are the arcs beside it). It made a rising wedge (emphasized by the 2 short diagonal lines) which bounced from the neckline (longest red line) and easily achievied the minimum target (red dotted vertical line) of 9,500. After a while, it just duck dove all the way to the 8,000 area as a result of continuing bad news on different companies. At present, DJI is around its major support (violet line). If backed up by good news, we might be seeing a rally in the next few days because of the doji-looking 1 day reversal with its latest candlestick (red circle on the 3rd picture). Click image to enlarge!