Playing By The Book...

The Dow played by the book completely today as it went sideways as I have expected. The Dow closed down by 40.24 point, sitting atop the 14000 level which is slowly solidifying as a support level. This is an extremely healthy move made on a day where the Pending Home Sales turned in terrible... as expected. The credit crunch is far from over even though many analysts seemed to think otherwise. Stock market action does not totally correlate to real economic conditions! Strangely, some analysts still failed to understand that. Well, no surprises today and I would not be surprised with another few sideways days before the bull continues. Let's just hope that this time round, the Dow really gets off the short term overbought region so as to set the pace for even stronger and more sustainable growth.