A Quiet Start To A Quiet Week...

FUNDAMENTAL ANALYSIS
With all the excitement behind us and most of the positive news already priced into last week's over 200 points move, it is certainly not strange to see such a quiet start to a week like this without any major release. The Dow was down marginally by 26.50 points today in a sideways maneuvor. Oil seems to be the only mover today and that might bring the energy up with it if it should continue tomorrow, however, if it goes into a sustained rally, which I do not think so, then it could put some pressure on the stock market. The $70 per barrel level is now pretty much a psychological resistance level and a level which might cause some panic if exceeded... we shall also keep an eye on that.

TECHNICAL ANALYSIS
Nothing surprising today as the Dow regained its staircase formation at last. I would expect another one or two day's sideways movement before the Dow makes another step up. Short term stochastics are still slightly off the overbought region and bullish momentum continues to build up, all is set for the staircase formation to go on and on. In technical analysis, the most important thing is the identify the prevailing chart pattern and find evidence to its strength or weaknesses. Here, the Dow has been on what I personally call the Staircase Formation, a formation where one big up day is followed by 3 to 4 sideways, small candle days and then another big up day.


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