Another Sideways Day...
The Dow closed down by 65 points in yet another sideways day. Although not strange to see a few sideways days following every big up day, going sideways along the 200 days moving average on such lower volume does say that investors are concerned about it as well.
The factory orders and ADP employment report did not surpise positively today (see Stock Market Calendar) but investors did not panic, which is a good thing. Panic is when there is a significant down day + big volume. Didn't see that today. Goes to show that investors are still locked on the recovery scenario.
As I have mentioned yesterday, the 200 days moving average is a significant resistance level and I would not expect to see a simple breakout. In fact, I would expect the Dow to revisit the 30 days moving average again before mustering enough energy for a breakout. For now, the Dow remains in a short term and intermediate bull trend within a primary bear trend.
The factory orders and ADP employment report did not surpise positively today (see Stock Market Calendar) but investors did not panic, which is a good thing. Panic is when there is a significant down day + big volume. Didn't see that today. Goes to show that investors are still locked on the recovery scenario.
As I have mentioned yesterday, the 200 days moving average is a significant resistance level and I would not expect to see a simple breakout. In fact, I would expect the Dow to revisit the 30 days moving average again before mustering enough energy for a breakout. For now, the Dow remains in a short term and intermediate bull trend within a primary bear trend.
posted by Jason Ng at 7:32 PM
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