Running Out of Short-term Steam

Another largely sideways day for the Dow, closing up by 44 points, making it the 6th consecutive positive day. Not unusual for the market to trade largely sideways for a few days following huge single day rallies or ditches. Even though volume was seriously lacking today, today's market action remained largely bullish as the Dow made new highs for the year. The Dow also entered short term overbought condition today and with investors obviously being cautious, I would expect the Dow to actually go sideways for a couple of days more before actually turning downwards and retest the 10,000 points level again. This retest is extremely important in order to establish it as the new short term support level. That will also help ease the Dow out of its short term overbought condition for new highs.

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

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