A sideways day...

The Dow closed up by 57.88 points today on a series of mixed economic data. Of significance, jobless claim ditched to multi years low along with the Feds comment suggesting that inflation is somewhat under control, gave investors a small spur of optimism. On the technical side, the Dow's behavior today is only good enough as a sideways day, making neither a higher high nor a lower low. With the Dow now in short term overbought region, it is not strange at all to see a few flat days like this or even a small pullback. All in all, not an exciting day nor is it a defining day. I will be watching the 13250 support level very closely. If the Dow break below this level strongly, we might see much much more downside to come as the Dow go into a bearish channel.


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