Slight Pullup Day...
The Dow ditched by 125 points last Friday as the huge dip in put call ratio earlier last week predicted. Indeed, market usually falls when traders are most optimistic. The total equities put call ratio has been returning to normalcy these few trading days into a more balanced 0.91 today as the Dow pulls up slightly.
Why do I call what appears to be an huge 73 points gain a "slight pullup"?
Well, for one a slight positive day is totally normal following huge single day declines and so far, decliners continue to lead advancers today. In fact, from today's intraday market action, it is obvious that the Dow has yet to break the gravitational field of the 11,000 points resistance zone. Indeed, one cannot expect such a significant psychological resistance level to be broken easily. I would not be surprised to see the Dow continue largely sideways this week in order to muster enough energy for a real breakout.
For now, the Dow turns a short term neutral trend within an intermediate and primary bull trend.
Why do I call what appears to be an huge 73 points gain a "slight pullup"?
Well, for one a slight positive day is totally normal following huge single day declines and so far, decliners continue to lead advancers today. In fact, from today's intraday market action, it is obvious that the Dow has yet to break the gravitational field of the 11,000 points resistance zone. Indeed, one cannot expect such a significant psychological resistance level to be broken easily. I would not be surprised to see the Dow continue largely sideways this week in order to muster enough energy for a real breakout.
For now, the Dow turns a 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 6:44 PM
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