Consumer Confidence Beat Estimates
The Dow moved sideways today, closing marginally higher by 5 points, coming back from deep intraday losses.
Fundamentals
Market started out today deep in the red with the Dow going as low as -77 points as retail numbers before market open failed to impress. However, market rebounded off its low after Consumer Confidence turned in better than expected at 10:00am (See Stock Market Calendar). All in all, we still see a strong market that is ready to act on any good news and that is what a healthy bull trend needs. Tomorrow's Durable Goods order report would also be important in pointing the way ahead for the economy and beating estimates on that number would certainly help give this bull trend legs.
Technicals
Not surprisingly, the Dow continued to go sideways today as investors continue to be cautious around this strong resistance zone. Even though it was just another sideways day, short term momentum indicators are already picking up and pointing to upside strength and we should see a clean breakout soon if the strength holds up with economic data supporting over the next few days. However, since we are at such a strong resistance level, any disappointment on the economic data front could also cause a landslide. Its time to be nimble.
For now, the Dow remains in a short term neutral trend, intermediate bull trend within a primary bull trend.
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Fundamentals
Market started out today deep in the red with the Dow going as low as -77 points as retail numbers before market open failed to impress. However, market rebounded off its low after Consumer Confidence turned in better than expected at 10:00am (See Stock Market Calendar). All in all, we still see a strong market that is ready to act on any good news and that is what a healthy bull trend needs. Tomorrow's Durable Goods order report would also be important in pointing the way ahead for the economy and beating estimates on that number would certainly help give this bull trend legs.
Technicals
Not surprisingly, the Dow continued to go sideways today as investors continue to be cautious around this strong resistance zone. Even though it was just another sideways day, short term momentum indicators are already picking up and pointing to upside strength and we should see a clean breakout soon if the strength holds up with economic data supporting over the next few days. However, since we are at such a strong resistance level, any disappointment on the economic data front could also cause a landslide. Its time to be nimble.
For now, the Dow remains in a short term neutral 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.
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posted by Jason Ng at 8:01 PM
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