Dow Jones

Since the sell-off on February 27th, the Dow has rallied 1,222 points in 8 weeks gaining 10% with just 7 down-days. With RSI and stochastics signalling overbought conditions and price action remaining bounded beneath the upper treadline; a pullback seems due. Short towards the uptrend support. Worth noting the seasonal investment strategy known by the saying “Sell in May and go away” is approaching, in which stocks are sold at the start of May and the proceeds held in bonds or a deposit account; stocks are bought again in the autumn, typically around the end of October.

Spansion Inc. (SPSN)

Previously a joint venture of AMD and Fujitsu, Spansion is dedicated exclusively to designing, developing, manufacturing, marketing and selling flash-memory solutions for wireless, automotive and networking applications. Spansion also specialises in developing NOR-type flash-memory chips, which are widely used to store software programmes in mobile phones and consumer electronics applications. Having declined 60% over a 6-month period, price action now seems to be breaking out of a Double Bottom formation. Stop-loss close below $11.50. Spansion announces first quarter fiscal 2007 earnings on April 18th.