Home Sales Tank & No Hint Of Rate Cut

FUNDAMENTAL ANALYSIS
Is it even surprising to see pending home sales hitting multi-years low when so many has been hurt in the last home rush? Is it even surprising to not get a hint of a rate cut out of the Fed beige book when I have explained the way Bernanke works yesterday? Is it even surprising to get a 143.39 points retreat in the Dow when it has moved more than 600 points since the rally begun back at 17 Aug? Enough said. Nothing has actually changed in the economy and nothing new has happened. The only thing that actually happened is that no miracles happened in yesterday's releases. All the numbers and news merely confirmed what we already know about the current situation. So what's the fuss? I don't really know. I guess some people just need to take some profit at this point.

TECHNICAL ANALYSIS
About time someone take some profit off the table as the Dow enters short term overbought. The Dow's small retreat of 143.39 points is marked by a retreating volume, suggesting that the move is not a trend changing one. Today's retreat put the Dow back on top of it's daily 30MA line again. That line was a resistance level just a few days ago and now, it needs to prove that it has become a support level by having the Dow bounce off and up tomorrow. If the Dow fall back down and close below the 30MA line, then we might see more sideways actions before a real rally begins.


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