A Bullish Down Day...

The Dow fought a rough battle against the bears today to end the day down marginally by 16 points.

Even though the Dow was down today, it was actually an extremely bullish down day. In fact, this is a down day where the VIX actually ended lower as well. The VIX is a well known "panic indicator". The fact that the VIX ended lower on a down day suggests that this "down day" is more bullish than bearish. In fact, it is extremely common to see a few sideways days following each significant bullish or bearish days as traders consolidate a little before the trend continues.

The 8500 to 9000 region is yet another resistance level for the Dow. This was the congestion zone for the Dow from October last year to January this year. Again, a decisive break out of this zone is necessary for the intermediate bull trend to continue.