Large Sideways Movement Today
Fundamentals
US market gained broadly today as oil took a hit despite mixed sales data. Sales data turned in mixed today but that didn't stop investors from buying into the
drop in oil price. Indeed, it has been an oil driven market right now as investor grew sensitive to the effects of oil price on the equities market. In fact,
the Dow had made a positive day on every negative oil day and a negative day on every positive oil day over the past 4 trading days. Investors returned on the
lower oil price in force today, sending bond yields higher across the board. This shows that investors are now eager and willing to re-enter the market despite
significant uncertainties surrounding the Libyan Crisis. Indeed, the economic recovery is so strong and evident now its hard to ignore.
Technicals
Even though the 124 points gain by the Dow looks tempting and encouraging, it is merely a continuation of the current short term neutral trend and changed nothing.
In fact, it continued to trade and close within the trading range of the 3 March rally which sets the range for the current short term neutral trend. However,
significant support is now evident along the 30DMA which does put the probability of a topside breakout higher than a bottomside one.
For now, the Dow remains in a short term neutral trend, intermediate bull trend and primary bull trend.
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