Stock Market Analysis

Monday, November 09, 2009

Dow Breaks Out For REAL!

The Dow broke out of the 10,000 points resistance zone as expected with a huge 203 points rally, closing the day at 10226 points.

Yes, this is the resolute, clean, breakout that makes a breakout. Volume was also encouraging and rally was broadbased. Not only did the Dow breakout of the 10,000 points zone cleanly, it also defeated last month's high all in one day (the 2 criteria I mentioned yesterday). This is an extremely important breakout that will promise more upside to come. The market broke out as G20 nations committed to continued support for world economy until recovery is certain. Obviously many people still think the recovery isn't certain. Well, we always need late comers to the party in order to throw leftovers to. We are certainly not one of them.

The Dow is still way off short term overbought and MACD has just crossed into positive territory, this gives plenty of room to upside before the Dow retreats and retest the 10,000 points again as I have mentioned yesterday. I expect this to be a strong positive week with some consolidation next week. Enjoy the bulls!

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

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


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