The Dow Rebounds On Energy Sector Rebound!

FUNDAMENTAL ANALYSIS
The Dow gained 56.42 points today as the energy sector rebounded over 2% after yesterday's ditch. The energy sector recovered as signs of strength returns to crude oil prices. Crude oil price almost hit the $70 per barrel level today before turning down again to close marginally lower, however, that is enough show of strength for the energy sector to come back up again. The Dow's gain may look little when compared to yesterday's close but if you look at how low it went today before coming up, you would see a full recovery range of 146.97 points in a day! Now, that's awesome or what?

TECHNICAL ANALYSIS
The Dow made a dragon tail formation today, which is a very strong bullish signal. The last time we saw a dragon tail formation was back in 14 March, which started this whole rally! A dragon tail formation is a 2 days formation which consist of one down candle followed by one small up candle with a long long bottom wick. This is like the traditional chinese dragon which signifies a good harvest if one spots it in one's field. A dragon tail formation in our "field" signifies a good rally to come. :)


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