Dow Breaks out on Empire State Index Surprise
The Dow did a decisive breakout of its 200 days moving average today, gaining over 256 points in as the Empire State Index announces a surprisingly positive number.
Consensus for the Empire State Index was for -4.5 but it turned out to be an amazing -0.55! In fact, this is the closest to the zero line the Empire State Index has reached since this whole economic crisis begun. Such a strong number does point investors towards a much better ISM index next month, fuelling the buying today.
In fact, if the Dow holds above its 200 days moving average line, which has been support and resistance for the Dow's primary trends, this could spell the end of this short technical pullback and also confirm the bullish reversal scenario. Short term bullish momentum remains strong as investors look forward to tomorrow's Philley Fed, which is another important leading indicator for the economy (see Stock Market Calendar). For now, the Dow is in a short term bull trend, intermediate bull trend and primary bear trend.
Consensus for the Empire State Index was for -4.5 but it turned out to be an amazing -0.55! In fact, this is the closest to the zero line the Empire State Index has reached since this whole economic crisis begun. Such a strong number does point investors towards a much better ISM index next month, fuelling the buying today.
In fact, if the Dow holds above its 200 days moving average line, which has been support and resistance for the Dow's primary trends, this could spell the end of this short technical pullback and also confirm the bullish reversal scenario. Short term bullish momentum remains strong as investors look forward to tomorrow's Philley Fed, which is another important leading indicator for the economy (see Stock Market Calendar). For now, the Dow is in a short term bull trend, intermediate bull trend and primary bear trend.
posted by Jason Ng at 6:10 PM
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