The Rebound Begins?

FUNDAMENTAL ANALYSIS
The Dow gained 92.84 points today in a spectacular come back, kicking off the week on a high note. Much of the gains has been due to a sharp 1.2% rebound in the extremely influential Finanical sector. The Financial sector was beaten down last week amidst fears of possible credit crunch. Helping the market along is a slight retreat in crude oil prices too. Apart from these, there wasn't much significant events driving the market, which brings us to the technical aspects.

TECHNICAL ANALYSIS
Today's market action didn't come as a surprise as I mentioned yesterday that the Dow should start to level off and trade sideways a bit for the weekly 30MA line to catch up and then stage a full scale rebound. Looks like it is happening at last and more significantly, it is happening right on top of the 13250 support level, which has been a significant support level since June 07. I will be watching for a possible entry soon.


Dow Technical Chart By Best Charting Software TC2007