What A Come Back!

WHAT A COMEBACK INDEED!

I mentioned yesterday that a slight pullback is expected at the 30MA resistance level and that 1 day plunges are never reliable and then today, we see the Dow come back almost all the way. In fact, if you look at the DIA, which is the ETF trading the DOW (or what I call the DOW sentiment indicator as most commoners tend to trade the DIA and not the DOW, giving an insight on what investors sentiments), it has more than recovered yesterday's plunge and has gone into the green!

While all these may be exciting, please try to remember that I mentioned yesterday that "these 2 days are critical". Yes, tomorrow remains critical and if we do not see the Dow break above the 30MA resistance level tomorrow, then the Dow can still laspe downwards into a bear channel. This is going to be a bumpy ride with the VIX making a new 4 years high recently. Expect volatilty to continue.