Mixed Mixed Mixed Day....

FUNDAMENTAL ANALYSIS
What a super mixed day with all kinds of mixed signals resulting in a mixed close. The Dow was down by slightly over 50 points and the Nasdaq Composite rose marginally by slightly over 2 points. Investors were literally tossed about helplessly in the waves of news today. Second quarter GDP rose at the fastest pace in more than a year (inflation worries comes), Uncle Ben's scheduled talk tomorrow (yes, we all know he is not going to cut rates yet...), surge in jobless claim to highest level since April (yes, many economist says that this is in line with the higher job creation numbers), Walmart took a slight hit after Evil-Lynch gave it a downgrade (not much effect we see), speculation that growth will slow for the rest of the year after such a surge in GDP (more reasons for the Fed to cut rates?), Dell surged on great earnings forecast... man, can we get more than these in just one day? I doubt Uncle Ben's talk tomorrow will do much to move the market but looking at the technicals, the market is indeed at a point which it needs to decide a significant move up or down...

TECHNICAL ANALYSIS
Good News - The Dow didn't fail at the 30MA resistance line today
Bad News - The Dow didn't break above the 30MA resistance line today

This is the fifth consecutive day which the Dow has stopped short right at the 30MA line and that makes it very very VERY worrying. This, along with the fact that the Dow is now in short term overbought, makes a break above the 30MA line very difficult. The dark side is this... if the Dow fails to stage a break, it could laspe down and form a mid term bearish channel... which means more downside to come for the rest of the year! This is the point of reckoning...


Dow Technical Chart By Best Charting Software, TC2007!