Dow Breaks Out!
The Dow made an impressive breakout last week, beating the April highs in one fell sweep, ending the week up 2.93% on a week on week basis.
After last week's impressive breakout, the Dow is once again in short term overbought condition and a few more days of going sideways or profit taking should be expected. The 11,250 level is now short term support and it is critical for the Dow to hold above this level if this intermediate bull trend is to have further legs.
It is going to be a quiet week ahead as we leave last week's heavy weight economic numbers behind us. Last week's data painted to us a picture of continued economic recovery at a slow pace which is what investors are looking for. This week would definitely see some of those investors take profit but that should not set off any panic.
For now, the Dow remains in a short term neutral trend, intermediate bull trend within a primary bull trend.
After last week's impressive breakout, the Dow is once again in short term overbought condition and a few more days of going sideways or profit taking should be expected. The 11,250 level is now short term support and it is critical for the Dow to hold above this level if this intermediate bull trend is to have further legs.
It is going to be a quiet week ahead as we leave last week's heavy weight economic numbers behind us. Last week's data painted to us a picture of continued economic recovery at a slow pace which is what investors are looking for. This week would definitely see some of those investors take profit but that should not set off any panic.
For now, the Dow remains in a short term neutral trend, intermediate bull trend within a primary bull trend.
posted by Jason Ng at 12:35 AM
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