Dow Rebounds
The Dow staged a fantastic rebound off its weekly 30MA as expected last week, gaining 2.54% or 258 points in all.
There were plenty of good and bad news last week and most important of all are that all leading indicators for the ISM index has surprised to upside, opening the possibility of a surprise in the ISM index that will be announced in the first week of March.
This sharp rebound off the 10,000 points level has been an extremely steep one, putting the Dow into a short term overbought condition. In fact, the Dow now needs to re-establish the daily 30MA as a support level now and would not be surprising if the Dow retreats and test that level this week. However, I have no doubt that this is not a dead cat bounce but the early phase of the Dow resuming the previous intermediate bull trend.
For now, the Dow remains in a short term bull trend, intermediate term neutral trend and primary bull trend.
There were plenty of good and bad news last week and most important of all are that all leading indicators for the ISM index has surprised to upside, opening the possibility of a surprise in the ISM index that will be announced in the first week of March.
This sharp rebound off the 10,000 points level has been an extremely steep one, putting the Dow into a short term overbought condition. In fact, the Dow now needs to re-establish the daily 30MA as a support level now and would not be surprising if the Dow retreats and test that level this week. However, I have no doubt that this is not a dead cat bounce but the early phase of the Dow resuming the previous intermediate bull trend.
For now, the Dow remains in a short term bull trend, intermediate term neutral trend and primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 10:55 PM
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