Created by: www.Investing-for-Beginner.org

Part 2

Stock MarketAnalysis

Follow up:This presentation is a follow-up to an earlier presentation I

created on August 30th 2010 entitled: “Stock Market Analysis Part 1”**

I added additional world Markets including Asian Markets, & other U.S. Indexes. The period of August 25th 2010 to

October 18th, are marked with arrows for your convenience.

**Presentation Part 1 Available @ slideshare.net &www.Investing-for-Beginner.org

U.S. Indexes in the Following Slides: 1) Dow Jones Industrial Average2) Dow Jones Composite Average3) Dow Jones Transportation Average4) NASDAQ Composite 5) S&P 500 Index6) NY Stock Exchange Composite 7) DJ Wilshire 5000 Index8) Russell 2000 Index9) S&P Small Cap 600 Index 10) MidCap 400 Index

Dow Jones Industrial Average Index -YTD Wednesday October 20th 2010

Oct. 18th

Aug. 25th

Dow Jones Composite Average -YTD Wednesday October 20th 2010

Oct. 18th

Aug. 25th

Dow Jones Transportation Average -YTD Wednesday October 20th 2010

Oct. 18th

Aug. 25th

NASDAQ Composite Index Wednesday October 20th 2010

Oct. 18th

Aug. 25th

S&P 500 Index Wednesday October 20th 2010

Oct. 18th

Aug. 25th

New York Stock Exchange CompositeWednesday October 20th 2010

Oct. 18th

Aug. 25th

DJ Wilshire 5000 Index -YTD Wednesday October 20th 2010

Oct. 18th

Aug. 25th

Russell 2000 IndexWednesday October 20th 2010

Oct. 18th

Aug. 25th

S&P Small Cap 600 Index Wednesday October 20th 2010

Oct. 18th

Aug. 25th

Midcap 400 Index Wednesday October 20th 2010

Oct. 18th

Aug. 25th

World Indexes - Next Slides: 1) FTSE 100 – UK 2) DAX 30 – Germany 3) CAC 40 – France4) Hang Seng Index- Hong Kong5) Bombay Sensex 30 - India

FTSE 100 Index - UKWednesday October 20th 2010

Oct. 18th

Aug. 25th

DAX 30 Index - GermanyWednesday October 20th 2010

Oct. 18th

Aug. 25th

CAC 40 Index - FranceWednesday October 20th 2010

Oct. 18th

Aug. 25th

Hang Seng Index - Hong KongWednesday October 20th 2010

Oct. 18th

Aug. 25th

Bombay Sensex 30 - IndiaWednesday October 20th 2010

Oct. 18th

Aug. 25th

Conclusion: Major indexes, both in the U.S. & around the World move in

similar directions and often reverse direction at the same time together. The period covering August 25th through October 18th revealed a strong upward trend in general markets. I examine major indexes to determine market forces and which direction they are going. Are they trending up, down, sideways, or getting ready to reverse direction…

I wait for “reversal points” such as the August 25th 2010 date highlighted in Part 1. I identified the reversal point on August 30th & acted on it. I have observed that when general Markets are rising, most stocks also rise (and vice versa for falling markets). Observing & Interpreting the broader market Index behavior, is one of many factors I use, before entering or exiting a trade.

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