Another Futile Attempt

The Dow gained 131 points today as traders made another futile attempt at breaking the 10,000 points level cleanly.

As expected, the Dow continues to struggle at the 10,000 points level stacking candles up on the 10,000 points line like skewed meat. When will the Dow muster the energy necessary to break from this skewer? Well, not without revisiting its 30MA. Rebounding off its 30MA has proven critical to helping the Dow break short term resistance levels and to make new highs. In the face of such a strong resistance level, I don't think its going to be an exception. With the 30MA catching up so quickly, I won't even be surprised at a revisit to the 50MA like it did early this month. Short term bearish momentum continue to rise into today's "rally" and volume isn't impressive either. With so many things against the Dow right now, I won't give much credibility to today's rally and will continue to look for more concrete evidence of strength.

For now, the Dow remains in all out bull trend.

Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!