Stock Market Analysis

Wednesday, June 02, 2010

Dow Recovers

The Dow gained a huge 225 points today, erasing the previous two days' losses, as store sales and pending home sales make good headway.

The Dow made an extremely important rebound today on great consumption data (see Stock Market calendar), taking back over 200 points of lost ground in a single day. Indeed, in an economy driven by consumption, consumers spending is extremely important and is what analysts are looking for as the real sign of the end of this recession. However, did today's rally change anything?

Seriously, nothing.

The Dow continues to struggle within an extremely tight volatile channel bounded by its 200 MA and the 10,000 support level. However, today's rally reinforced the credibility of the 10,000 points support even though volume is relatively low. The Dow is once again up against the 200MA line and we will certainly be watching out for a clean breakout before deciding which direction to go on.

For now, the Dow turns a short term neutral trend, intermediate bear trend and a primary bull trend.

Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!


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