Monday Morning Market Review: 2007-10-08

Scoreboard

INDEX	10/5/07 CLOSE	ALL TIME HIGH	% CHANGE YTD	% CHANGE 52 WEEK
S&P 500	1557.59	1557.59 (10/5/07)	9.8%	15.4%
Dow Jones Industrial Average	14066.01	14087.55 (10/1/07)	12.9%	18.7%

INDEX	P/E TRAILING	P/E FORWARD	DIVIDEND YIELD
S&P 500	18.1	16.6	1.8%
Dow Jones Industrial Average	16.9	16.1	2.1%

Trend Analysis

Trend ***	S&P 500	DJIA
Primary (200 day MA)	Up	Up
Intermediate (50 day MA)	Up	Up
Short-term (10 day MA)	Up	Up

(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend

*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.

Richard Russell’s PTI

Russell’s PTI is Bullish

Facts & Interesting Tidbits

• The DJIA is up 9.5% from its mid-August low.
• The DJIA was up 1.2% for the week, its fourth straight weekly gain.
• The DJIA reached a new record close of 14087.55 on Monday.
• The DJIA hit a new intraday high of 14124.54 on Friday.
• The S&P 500 closed at a record high on Friday.
• Volatility has increased - between July 19 and late September, roughly half the trading sessions freatured swings in the S&P 500 of at least 1%. By contrast, in all of 2005 and 2006 combined there were less than 60 trading days in which prices moved more than 1%. (Source: Wall Street Journal)

The Bottom Line

Markets hit record highs last week as investors hope the worst is over. A positive employment report drove the market higher on Friday. The market continues its bullish trend. The Dow continues to lead the way as investors are favoring large multi-national businesses.