The Dow Makes New Highs Ahead Of FOMC

FUNDAMENTAL ANALYSIS
What a day! The Dow gained 43.73 points after the NY Empire State Index beat estimates by a mile, starting a day of strong buying amidst resilient profit taking. The NY Empire State Index is a seasonally-adjusted index that tracks the results of the Empire State Manufacturing Survey. The survey is distributed to roughly 175 manufacturing executives and asks questions intended to gauge both the current sentiment of the executives and their six-month outlook on the sector. With investors further assured of economic growth, tomorrow's PPI numbers will give a preliminary look at the inflationary pressure. Investors will no doubt love a retreating number tomorrow.

TECHNICAL ANALYSIS
The Dow continues a rather dangerous climb along an extremely steep cliff today as volume continues to retreat steadily indicating declining interest in the rally. If the Dow should tee off and trade sideways for a couple of days before the next big gain, then it would have formed a new staircase formation and that would give it a strong reason to go further but if the Dow should continue to climb steeply like that, I am afraid with the declining volume, we could see a significant contraction soon.


Dow Technical Chart By Best Charting Software TC2007!