Volatile Week Ahead...
Welcome to one of the most volatile weeks of the year. This week, we have the FOMC Announcement on Wednesday as well as Quadruple Witching on Friday (see Stock Market Calendar). These events are extremely volatile and not for the faint of heart.
The Dow continued to move sideways within its short term neutral channel last week and is now once again at the top of the channel. However, there are 2 positive points at this point. First, the Dow rebounded off its 30MA nicely last week and everytime it does that, it usually rebounds to new highs. Secondly, the short term bullish momentum which was lacking last week appeared at last, providing fuel for a topside breakout. The negative this week would be volatility. I suspect that even if a breakout occurs, it would quickly be taken back by the end of the week.
For now, the Dow remains in short term neutral trend within an intermediate and long term bull trend.
The Dow continued to move sideways within its short term neutral channel last week and is now once again at the top of the channel. However, there are 2 positive points at this point. First, the Dow rebounded off its 30MA nicely last week and everytime it does that, it usually rebounds to new highs. Secondly, the short term bullish momentum which was lacking last week appeared at last, providing fuel for a topside breakout. The negative this week would be volatility. I suspect that even if a breakout occurs, it would quickly be taken back by the end of the week.
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 5:44 PM
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