Up Up and AWAY!
The Dow clears itself off the influence of the 9500 resistance zone today like a rocket ship out of Earth's gravity field, closing up 108.30 points.
Fundamentals
Investors were greeted with more indications of economic recovery today as both industrial production and housing index beat expectations (see Stock Market Calendar). In fact, this is the first time industrial production is up 2 months in a row since Oct 2007 when the economic crisis begun, indicating that the recession for manufacturing is over. Housing index also continued to rise and beat expectations suggesting the recovery in the housing market is also underway. Both numbers pleased investors greatly as they continue to push the Dow towards the 10,000 points mark. Tomorrow's focus would be the Philly Fed, housing starts and jobless claims.
Technicals
The breakout today is like pulling right out of a gravity field. Today's breakout completely took the Dow out of the influence of the 9500 resistance zone, paving the way for the 10,000 points mark. Short term bullish momentum continue to rise even though the Dow is slightly short term overbought. As far as technicals goes, nothing tells me that the Dow is going to retreat anytime soon. Let the bulls RUN!
For now, the Dow remains in all out bull trend.
Fundamentals
Investors were greeted with more indications of economic recovery today as both industrial production and housing index beat expectations (see Stock Market Calendar). In fact, this is the first time industrial production is up 2 months in a row since Oct 2007 when the economic crisis begun, indicating that the recession for manufacturing is over. Housing index also continued to rise and beat expectations suggesting the recovery in the housing market is also underway. Both numbers pleased investors greatly as they continue to push the Dow towards the 10,000 points mark. Tomorrow's focus would be the Philly Fed, housing starts and jobless claims.
Technicals
The breakout today is like pulling right out of a gravity field. Today's breakout completely took the Dow out of the influence of the 9500 resistance zone, paving the way for the 10,000 points mark. Short term bullish momentum continue to rise even though the Dow is slightly short term overbought. As far as technicals goes, nothing tells me that the Dow is going to retreat anytime soon. Let the bulls RUN!
For now, the Dow remains in all out bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 6:17 PM
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