Dow Rebounds...
Happy Chinese New Year to all our chinese readers out there! Here's wishing you a prosperous year of the tiger!
The Dow did an important rebound off the 10,000 points support level last week, up 87 points week on week to close 10,099 points. This rebound is an extremely important one in resuming the intermediate bull trend and keeping the primary bull trend intact. In fact, the Dow also rebounded off its weekly 30MA, which is a strong intermediate support/resistance line. This was the line the Dow rebounded off to new highs last July in a similar intermediate pullback. On the short term basis, there is a strong bullish divergence on the stochastics along with strong reversal signals which no doubt spells the end of the this intermediate pullback. Its time to look for strategic entry points once again.
This Friday is going to be options expiration Friday, so some volatility should be expected to build up along the week. However, since its not quadruple witching Friday, so it shouldn't be too much of a concern.
This is a holiday shortened week with President's Day on Monday, so, enjoy the long weekend those of you in the US! :)
The Dow did an important rebound off the 10,000 points support level last week, up 87 points week on week to close 10,099 points. This rebound is an extremely important one in resuming the intermediate bull trend and keeping the primary bull trend intact. In fact, the Dow also rebounded off its weekly 30MA, which is a strong intermediate support/resistance line. This was the line the Dow rebounded off to new highs last July in a similar intermediate pullback. On the short term basis, there is a strong bullish divergence on the stochastics along with strong reversal signals which no doubt spells the end of the this intermediate pullback. Its time to look for strategic entry points once again.
This Friday is going to be options expiration Friday, so some volatility should be expected to build up along the week. However, since its not quadruple witching Friday, so it shouldn't be too much of a concern.
This is a holiday shortened week with President's Day on Monday, so, enjoy the long weekend those of you in the US! :)
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 5:49 PM
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