Pessimism Continues...

FUNDAMENTAL ANALYSIS
Pessimism reins today in the stock market as investors get edgey over the slight rebound in oil and the big time numbers coming out this week. Yes, there are so much uncertainty as to how the numbers will turn out that investors are not willing to place a bet. Every single rebound in crude oil price also have investors thinking if it is the start of another leg up in crude oil price, adding to the pessimism. When pessimism is this strong in the market, investors act on the sour and hesitate on the sweet. It is certainly going to take a lot more than just a few good numbers to turn investors sentiments around.

TECHNICAL ANALYSIS
No surprise today as the Dow confirms the evening star signal of last week by going down big today. Near term support would be around 11000 where a reassessment need to be done as to whether the Dow would make a new low, pushing this bear trend further or rebound into a double bottom formation. In technical analysis, we don't suggest a car is about to turn around until we see the steering wheel being turned.