Bargain Hunting Declines...
The Dow lost a marginal 17 points today as higher oil price puts pressure on the market.
Fundamentals
The Dow lost some ground today as short term profit taking on higher oil price pushed back bargain hunters. Today's a low volume trading day as bargain
hunting declined after the big 3 days rebound. World events are still uncertain in the short term and actions taken in Libya only serve to push oil prices
higher for the short term. Higher oil price when the market is already under pressure is never a good thing.
Technicals
The Dow made a sideways day today at its 50MA. As I mentioned to paid subscribers yesterday, the 50MA is a critical level to break if the bull trend has
any hope of resuming. Today's market action revealed significant loss of buying interest at this level, confirming it as a resistance level. If bargain
hunters are discouraged within the next few days and sell off, the Dow could sink into an intermediate bear trend. For now, it can still go either way
so it is still not the time to take directional bets yet unless you are a soothsayer.
For now, the Dow remains in a short term bear trend, intermediate bull trend and 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.
Fundamentals
The Dow lost some ground today as short term profit taking on higher oil price pushed back bargain hunters. Today's a low volume trading day as bargain
hunting declined after the big 3 days rebound. World events are still uncertain in the short term and actions taken in Libya only serve to push oil prices
higher for the short term. Higher oil price when the market is already under pressure is never a good thing.
Technicals
The Dow made a sideways day today at its 50MA. As I mentioned to paid subscribers yesterday, the 50MA is a critical level to break if the bull trend has
any hope of resuming. Today's market action revealed significant loss of buying interest at this level, confirming it as a resistance level. If bargain
hunters are discouraged within the next few days and sell off, the Dow could sink into an intermediate bear trend. For now, it can still go either way
so it is still not the time to take directional bets yet unless you are a soothsayer.
For now, the Dow remains in a short term bear trend, intermediate bull trend and 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 7:51 PM
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