Rising Crude Beats Down The Bulls

FUNDAMENTAL ANALYSIS
Crude oil challenging the $66 level along with a sell-off in GM and common sentiments that the rally is due for a little pullback caused investors to start taking some profits off the table. The Dow was down 42.58 points today, actually not a very serious pullback. Looking at the internals, decliners failed to significantly lead advancers, signifying that the bullish undercurrent is still intact. With the China market still bullish and pulling global markets along prior to the launch of their index futures, I think this pullback is healthy and will help the market ride the global trend further.

TECHNICAL ANALYSIS
The Dow was down today as expected after yesterday's buying climax. I don't think it is the end of the pullback yet as the short term stochastics remains grossly overbought. I see a possible testing of the 12800 level before a rebound is possible.


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