Pullback Begins...
The pullback that I have been talking about for so many days are definitely happening at last with the Dow retreating 36 points.
Yes, the long awaited ease off is at last happening with the sharp decline in chain store sales (see Stock Market Calendar) as the "excuse" for doing so. Bond yields collaspe across the spectrum as investors flee from equities back into safe harbor and options traders took a definite move to a more equalised trading between put and call options from a deeply call options biased stance.
Indeed, in order for the market to go higher, this ease off is mandatory and long overdue. In fact, the Dow should bounce off its 30 or 50MA line, which has been its intermediate bull trend support so far, before it could go any higher. Same thing goes for the Nasdaq Composite that has ran out of steam at last.
For now, the Dow remains in short term neutral trend within an intermediate and primary bull trend.
Yes, the long awaited ease off is at last happening with the sharp decline in chain store sales (see Stock Market Calendar) as the "excuse" for doing so. Bond yields collaspe across the spectrum as investors flee from equities back into safe harbor and options traders took a definite move to a more equalised trading between put and call options from a deeply call options biased stance.
Indeed, in order for the market to go higher, this ease off is mandatory and long overdue. In fact, the Dow should bounce off its 30 or 50MA line, which has been its intermediate bull trend support so far, before it could go any higher. Same thing goes for the Nasdaq Composite that has ran out of steam at last.
For now, the Dow remains in short term neutral trend within an intermediate and primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 5:53 PM
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