Dow Defeats The 12800 Point!

FUNDAMENTAL ANALYSIS
The Dow mustered enough energy to break the 12800 point at last to new highs as we have expected to close at 12803.84 points! The primary mover behind this surge is again the great earnings season as giants like JPMorgan Chase beat analyst expectations. Even though the stock market continue to rise steadily on rising volume, advancers are already secretly retreating in the background. Today, decliners beat advancers in a show of fatigue. I think it is high time the Dow joined the Nasdaq composite in a little pullback after 5 straight days of gains.

TECHNICAL ANALYSIS
Yes, the Dow broke historical high as expected... the question now is, what's next? The Nasdaq composite has already begun its pullback and the Dow also looks like a pullback is already imminent. Its advance has been slowing down over the last few trading days with daily gains narrowing down even though volume is rising. Short term stochastics is also in the deeply overbought region. I would expect a couple of days of pullback as far down as the 12700 region before resuming the bull trend.

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