The Dow Closed Sideways On Lower Consumer Confidence
FUNDAMENTAL ANALYSIS
The Dow closed sideways again as consumer confidence numbers turned in 10 months low. The consumer confidence index is a survey of 5,000 consumers asking them how they feel about the current economy and their spending patterns. They will also be asked how confident they are about buying expensive consumer goods. The report is split into how people feel now and their expectations over the next few months. It is not a major economic index and its results does not corelate directly into economic wellbeing. That is probably why the Dow managed to hold on sideways despite a pretty discouraging reading. Tomorrow is expected to be another dry day in the market as investors await news from the Fed on Thursday. Strangely, even though we all know that the Feds are most probably going to hold interest rates stagnant again this time round, most investors still prefers to sit on the sidelines prior to the release.
TECHNICAL ANALYSIS
The Dow closed marginally lower today as volume continues to dry up.... a good sign for the bulls. On the weekly charts, it still does seem like the Dow needs to find a way to touch the 30MA line again, either by means of a big correction to about 12780 or remain range bound until the 30MA line catches up with it again.
The Dow closed sideways again as consumer confidence numbers turned in 10 months low. The consumer confidence index is a survey of 5,000 consumers asking them how they feel about the current economy and their spending patterns. They will also be asked how confident they are about buying expensive consumer goods. The report is split into how people feel now and their expectations over the next few months. It is not a major economic index and its results does not corelate directly into economic wellbeing. That is probably why the Dow managed to hold on sideways despite a pretty discouraging reading. Tomorrow is expected to be another dry day in the market as investors await news from the Fed on Thursday. Strangely, even though we all know that the Feds are most probably going to hold interest rates stagnant again this time round, most investors still prefers to sit on the sidelines prior to the release.
TECHNICAL ANALYSIS
The Dow closed marginally lower today as volume continues to dry up.... a good sign for the bulls. On the weekly charts, it still does seem like the Dow needs to find a way to touch the 30MA line again, either by means of a big correction to about 12780 or remain range bound until the 30MA line catches up with it again.
posted by Jason Ng at 6:12 PM
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