Touch & Go...

Well, it does look like the Dow have decided to reverse its course back up in continuation of its intermediate neutral trend afterall. Traders are buying into those dreadful economic numbers (see economic calendar), such as the multi-year high jobless claims today, in expectation of a reversal following peaky looking numbers. Indeed, that was exactly what happened in the past but is it going to repeat this time round? My take is a resounding YES. The bottom is certainly near and traders like myself are just trying to spot the exact reversal point. For amateur investors who don't need to get to that fine a resolution, this is certainly the time to start a progressive position building program. Don't be surprised to see the market actually come down a little bit tomorrow, its just textbook after such a strong, committed rally. For now, the neutral channel and the 8100 support level remains safe from the final capitulation that I have been expecting.


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