Jobless Claims Disappoints...
The Dow pulled back significantly by 76 points today as investors sell into the worse than expected jobless claims.
Fundamentals
Jobless claims continued its above 450K trend, turning in above expectation at 465K. The worse than expected jobless claims opened the market deep in the red and even though the better than expected leading indicators attempted to push the market into the green today, investors took it all back by the end of the day closing all three major indices negative. So, is this pullback a negative?
Technicals
Like I said before, the Dow can only confirm this new bull trend if it goes sideways until it gets out of its short term overbought condition or pull back significantly in order to do so. That's right, a pullback in a healthy bull trend is like occassionally releasing the pressure on a hooked fishing line. Today's pullback along with those few sideways days this week has successfully taken the Dow and S&P500 slightly out of its short term overbought condition. In fact, the S&P500 is now testing its 1125 for support (which used to be resistance level). Once support is established, we would see new highs from this point forward.
For now, the Dow remains in a short term bull trend, intermediate bull trend within a primary bull trend.
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Fundamentals
Jobless claims continued its above 450K trend, turning in above expectation at 465K. The worse than expected jobless claims opened the market deep in the red and even though the better than expected leading indicators attempted to push the market into the green today, investors took it all back by the end of the day closing all three major indices negative. So, is this pullback a negative?
Technicals
Like I said before, the Dow can only confirm this new bull trend if it goes sideways until it gets out of its short term overbought condition or pull back significantly in order to do so. That's right, a pullback in a healthy bull trend is like occassionally releasing the pressure on a hooked fishing line. Today's pullback along with those few sideways days this week has successfully taken the Dow and S&P500 slightly out of its short term overbought condition. In fact, the S&P500 is now testing its 1125 for support (which used to be resistance level). Once support is established, we would see new highs from this point forward.
For now, the Dow remains in a short term bull trend, intermediate bull trend within a primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
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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