Happy Jolly Day!
Investors cheered a better than expected store sale and auto sale today, closing the Dow up 126 points.
Index futures were already sky high prior to market opening today as store sales and auto sales (see Stock Market Calendar) beat expectations. Investors also came to the realisation that the Dubai World incident really isn't as big a deal as the media made it to be. The Dow zipped right up upon opening and traded flat for the rest of the day. In fact, investors were so optimistic that they looked past the ISM index which failed to beat expectations. Indeed, like I mentioned yesterday, some volatility in the ISM index at this level is to be expected and nothing to be made a fuss about.
Even through today's rally still kept the Dow within a narrow short term neutral channel, the probability of a topside breakout is now extremely high with the Dow way off short term overbought condition with short term bullish momentum rising. The 30MA is once again at a comfortably close proximity and could guide the Dow higher from here onwards.
For now, the Dow remains in short term neutral trend within an intermediate and long term bull trend.
Index futures were already sky high prior to market opening today as store sales and auto sales (see Stock Market Calendar) beat expectations. Investors also came to the realisation that the Dubai World incident really isn't as big a deal as the media made it to be. The Dow zipped right up upon opening and traded flat for the rest of the day. In fact, investors were so optimistic that they looked past the ISM index which failed to beat expectations. Indeed, like I mentioned yesterday, some volatility in the ISM index at this level is to be expected and nothing to be made a fuss about.
Even through today's rally still kept the Dow within a narrow short term neutral channel, the probability of a topside breakout is now extremely high with the Dow way off short term overbought condition with short term bullish momentum rising. The 30MA is once again at a comfortably close proximity and could guide the Dow higher from here onwards.
For now, the Dow remains in short term neutral trend within an intermediate and long term bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 5:25 PM
0 Comments:
Post a Comment
<< Home