Stock Market Analysis

Tuesday, July 31, 2007

The Dow Continues Sideways

Much to our surprise, the Dow failed to stage a rally yesterday but instead lasped into a sideways day as it traded and closed within the trading range of the last 2 days. It was really surprising especially with such a strong opening and pre opening futures. What wasn't surprising was the fact that the Dow remains a feet away from its weekly 30MA line, which we expect the Dow to reach before it can stage a credible, sustainable rally. It looks like it is happening. The next few days will be critical... the Dow is still at a strong support level and has traded sideways for 2 days. Will it continue to trade sideways while waiting for the weekly 30MA line to catch up (which isn't very far away now) or will it ditch further in an attempt to reach the line faster?

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