![\"DJIA,](\"http:\/\/www.laidtrades.com\/wp-content\/uploads\/2010\/07\/Dow-Jones-Industrial-Average-July-4-2010.jpg\")
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Here\u2019s a weekend wrap-up of the Dow Jones Industrial Average (^DJI<\/a>). The\u00a0^DJI has broken down from the neckline of the head and shoulders formation (indicated by the red circle), following the same fate of the Nasdaq Composite<\/a> (kindly click here<\/a> to see it) and the\u00a0S&P 500<\/a> (kindly click here<\/a> to see it). Its value could now decline to the 9,378.77 \u00a0support. If that price mark gets breached, the next \u00a0support could be the 9,000.00-9,200.00 level. However, in case the Dow Jones Industrial Average heads back up, the neckline of the head and shoulders formation could serve as the immediate resistance. But if the neckline gets cleared out, it could then rise and aim for the 10,627.20 level.<\/p>\n As for Danny\u2019s comparative analysis request, this is just going to be short and straight to the point. In the chart of the Dow Jones Industrial Average, the index has broken down from the head and shoulders formation as seen in the image placed on this post and is more likely to be headed south in the coming days while the Philippine Stock Exchange index hasn\u2019t broken down from anything yet and in fact still maintains an uptrend (kindly click here<\/a> to see it). \u00a0At the same time, I see no reversal setups in the PSEi as of this moment.<\/p>\n Note that the Philippine market as well as most of the other markets in the world follow the movement of the US since the US is the biggest economy in the world. Anything that happens in their economy, due to globalization, affects the rest of the world in one way or the other. Specifically, its trade demand from other countries would weaken if their own consumption weakens as well. Moreover, the so-called \u201chot money\u201d which streams easily in and out of the world\u2019s financial markets would flow out of the emerging markets like the Philippines since such markets are deemed \u201criskier\u201d than the US.<\/p>\n Recently, though, there is a slight decoupling between the US market and the Philippines. Still, the PSEi could follow some of the US market drops especially the drastic ones. It could even breakdown from its uptrend but personally, I don\u2019t think it would change its course and entirely follow the footsteps of the US indices right away. From a technical point of view, the PSEi would continue its rise as long as its uptrend is intact. What do you think? Kindly share your thoughts. Thank you!<\/p>\n