Rebound Begins
The Dow gained 150 points today as chain store sales surprises to upside.
Surprisingly, chain store sales are beginning to pick up only after the Christmas/New Year season as it rebounds up 1.4%. Futures pointed sharply to upside after the number was released this morning, kicking the market off to a running start. There was healthy participation and bond yields rose across the spectrum as bond traders reallocates back into equities. Overall, this is one bullish day with nothing to pick on.
In fact, today's rally also created a bullish divergence on our stochastics indicators and such a divergence + dragon tail formation + 10,000 points support level really gives me no reason to doubt that the market is going to rebound from here to new highs. However, in order for this rebound to be confirmed, the Dow needs to get back above its daily 30MA and that is the point where the more conservative amongst us enters... when will you?
Surprisingly, chain store sales are beginning to pick up only after the Christmas/New Year season as it rebounds up 1.4%. Futures pointed sharply to upside after the number was released this morning, kicking the market off to a running start. There was healthy participation and bond yields rose across the spectrum as bond traders reallocates back into equities. Overall, this is one bullish day with nothing to pick on.
In fact, today's rally also created a bullish divergence on our stochastics indicators and such a divergence + dragon tail formation + 10,000 points support level really gives me no reason to doubt that the market is going to rebound from here to new highs. However, in order for this rebound to be confirmed, the Dow needs to get back above its daily 30MA and that is the point where the more conservative amongst us enters... when will you?
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 7:28 PM
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