Investors Take It Off The Table

After being beaten down since the year begun, investors took the opportunity to take some money and profit off the table as strength in this relieve rally wanes. This is the kind of herding behavior and generally equal tolerance for pain that creates resistance levels. All these happened as the Dow come up against a strong daily 30MA resistance. There wasn't really any real negative drivers today and internals still look healthy with advancers almost on par with decliners, suggesting that today's actions are purely technical (oil and bonds didn't change much either). That being said, if the Dow fails to break above 12750 decisively within the next few days, it could spell the end of this "dragon tail formation push" relieve rally. The end of a rally this early could spell the continuation of the bear trend and a retest of the January lows.