Bulls Takes A Breather

There is really nothing fundamental behind today's move, which was at best another sideways day. Even though giants like Apple are turning in great earnings early in the market, it failed to drive the market positive with resolution. In the end, the Dow and the Nasdaq composite are up slightly but with decliners leading advancers. Technically, we see the Dow forming a pretty disciplined "Staircase Formation" with large up days interspersed with a couple of days of small sideways days like the one today. Mid term bullish momentum remains strong and I see no reason why we should not see another step up coming up in the next few days. There is one concern about this formation though. If we do not see a new high within the next 4 trading days, then the Dow may be due for a slightly correction as it is already in the grossly short term overbought region.

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