Jobless Claims Beats!
The Dow surged 61 points today as Jobless Claims turned in far better than expected.
Fundamentals
After being wallopped by a barrage of worse than expected economic numbers this week, investors were relieved to find the Jobless Claim turning in far better than expected. Indeed, as I mentioned yesterday, investors definitely need a foothold after this month's dismal employment numbers and that this may be the catalyst needed to power the Dow all the way to 10,000 points. Jobless Claims this week turned in at 521K, beating consensus of 540K by a mile. In fact, today's number took jobless claim's 4week average line, which is the indicator most analysts watch, down to the lowest level of the year. Even though it is still way higher than the pre-recession levels of about 350K, its still a significant improvement that points to a brighter tomorrow. Earnings of companies continue to beat estimates today, casting an optimistic sentiment on the rest of the earnings season.
Technicals
The Dow's 61 point rally was an important one on strong volume. Today's rally followed up on the rally 2 days ago, which is essential to the integrity of this intermediate bull trend. Should today turn out to be a dismal down day, the intermediate bull trend could be at stake. For now, bullish momentum continues to rise with plenty of room left to short term overbought. As long as the Dow breaks last month's high, there will be no more resistance on the way to the 10,000 points level.
For now, the Dow remains in short term neutral trend, intermediate term bull trend and primary bull trend.
Fundamentals
After being wallopped by a barrage of worse than expected economic numbers this week, investors were relieved to find the Jobless Claim turning in far better than expected. Indeed, as I mentioned yesterday, investors definitely need a foothold after this month's dismal employment numbers and that this may be the catalyst needed to power the Dow all the way to 10,000 points. Jobless Claims this week turned in at 521K, beating consensus of 540K by a mile. In fact, today's number took jobless claim's 4week average line, which is the indicator most analysts watch, down to the lowest level of the year. Even though it is still way higher than the pre-recession levels of about 350K, its still a significant improvement that points to a brighter tomorrow. Earnings of companies continue to beat estimates today, casting an optimistic sentiment on the rest of the earnings season.
Technicals
The Dow's 61 point rally was an important one on strong volume. Today's rally followed up on the rally 2 days ago, which is essential to the integrity of this intermediate bull trend. Should today turn out to be a dismal down day, the intermediate bull trend could be at stake. For now, bullish momentum continues to rise with plenty of room left to short term overbought. As long as the Dow breaks last month's high, there will be no more resistance on the way to the 10,000 points level.
For now, the Dow remains in short term neutral trend, intermediate term bull trend and primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 6:27 PM
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