Caught In The Fake-out?
The Dow ditched by 268 points today, retesting the 10,000 points support level.
Yes, without any surprise, the Dow retested the 10,000 points support as we expected it to. As I said 2 days ago, intermediate pullbacks such as this one won't die without a fight and I believe a lot of investors were caught in this "fake-out". Yes, this is once again grim reminder to traders never to jump in on a trend too early and without waiting for confirmation.
Today's ditch came on the back of a much higher than expected jobless claims number which paints a bad picture for the Jobs report tomorrow. It does seem like a lot of the pessimism surrounding tomorrow's job report has already been priced in and I won't be surprised to see a sideways, slightly positive day on Friday no matter how the Jobs report turns out.
For now, the Dow turns a short term bear trend and a intermediate term bear trend within a primary bull trend.
Yes, without any surprise, the Dow retested the 10,000 points support as we expected it to. As I said 2 days ago, intermediate pullbacks such as this one won't die without a fight and I believe a lot of investors were caught in this "fake-out". Yes, this is once again grim reminder to traders never to jump in on a trend too early and without waiting for confirmation.
Today's ditch came on the back of a much higher than expected jobless claims number which paints a bad picture for the Jobs report tomorrow. It does seem like a lot of the pessimism surrounding tomorrow's job report has already been priced in and I won't be surprised to see a sideways, slightly positive day on Friday no matter how the Jobs report turns out.
For now, the Dow turns a short term bear trend and a intermediate term bear trend within a primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 2:21 AM
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