Market Rally Continues...
The Dow gained 193 points today pushed on by better than expected ISM services.
Fundamentals
US market staged a broad rally today as ISM services (see Stock Market Calendar) turned in better than expected. The ISM Non-Manufacturing Index (commonly known as ISM services index) is a monthly index that tracks the non-manufacturing industries in the US while the ISM Manufacturing Index (commonly known as ISM Index) tracks manufacturing industries. Today's ISM services turned in at 53.2 versus consensus of 52 and while the ISM services index isn't known to be a strong market moving index, it certainly helped keep the current market bullishness going. Looking ahead, we have a barrage of jobs data coming up; ADP Employment tomorrow, Jobless Claims on Thursday and the all important jobs report on Friday. Investors were encouraged by better than expected jobless claims last week and is certainly anticipating positive surprise in some of these numbers this week as well.
Technicals
The Dow broke out of last week's sideways movement into new highs today as it draws nearer to the 11,100 points resistance level. The breakout today was strong and with good volume. Furthermore, it also left plenty of room to go to upside as it is still far from being technically short term overbought, giving it some odds of breaking the 11,100 points level when it reach there later this week. All in all, the current bull trend is progressing at an extremely healthy pace but do expect another couple of days of sideways movement as investors take some short term profit. All big up days are followed by a few small sideways days like we saw last week in order to keep the pace healthy and sustainable.
For now, the Dow remains in a short term bull trend, intermediate bull trend within a primary bull trend.
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Fundamentals
US market staged a broad rally today as ISM services (see Stock Market Calendar) turned in better than expected. The ISM Non-Manufacturing Index (commonly known as ISM services index) is a monthly index that tracks the non-manufacturing industries in the US while the ISM Manufacturing Index (commonly known as ISM Index) tracks manufacturing industries. Today's ISM services turned in at 53.2 versus consensus of 52 and while the ISM services index isn't known to be a strong market moving index, it certainly helped keep the current market bullishness going. Looking ahead, we have a barrage of jobs data coming up; ADP Employment tomorrow, Jobless Claims on Thursday and the all important jobs report on Friday. Investors were encouraged by better than expected jobless claims last week and is certainly anticipating positive surprise in some of these numbers this week as well.
Technicals
The Dow broke out of last week's sideways movement into new highs today as it draws nearer to the 11,100 points resistance level. The breakout today was strong and with good volume. Furthermore, it also left plenty of room to go to upside as it is still far from being technically short term overbought, giving it some odds of breaking the 11,100 points level when it reach there later this week. All in all, the current bull trend is progressing at an extremely healthy pace but do expect another couple of days of sideways movement as investors take some short term profit. All big up days are followed by a few small sideways days like we saw last week in order to keep the pace healthy and sustainable.
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 9:40 PM
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