Dow Gains Despite Lousy Numbers

Even though economic numbers turned in worse than expected today, the Dow still gained 82 points due to technical rebound from yesterday's ditch.

Yes, a small pullback or a few sideways days usually follows every big up or down day. There is nothing economic behind such moves. Its just normal profit taking or stop loss in play after big moves. In fact, today's gain can only be classified as a sideways day in the context of yesterday's 186 points ditch. Bearish momentum continues to grow as trading volume continues to shrink. The 30 days moving average at about 9000 points continue to be the short term support target.

Investors will be waiting for forward looking data in this Thursday's Leading Indicators and Philley Fed (see Stock Market Calendar). However, with options expiration Friday coming up, I doubt there will be any committed buying. This also falls into the pullback/sideways to 9000 points scenario that I have painted over the last few days.

For now, the Dow is in short term neutral trend, intermediate term bull trend and primary bull trend.