Dow Continues To Struggle Sideways
The Dow went sideways today as the service industry and store sales slowed, closing downwards marginally by 6 points.
Fundamentals
Even though ISM services and redbook reported disappointing numbers, the market still found strength to climb back up from a negative open until the FOMC minutes released in the afternoon. Even though the FOMC minutes were largely as expected, investors still sold off following the release, leading to a mixed close. The sense of the market being overextended is still strong and strong intraday profit taking is now evident. As such, I won't be surprised to see the kind of short term profit taking retreat I spoke of last week.
Technicals
The Dow continues to struggle at its short term 12,400 points resistance level. Such resistance usually resolves itself in two ways; Retreat to retest short term support before rebounding to new highs or go sideways until 30MA or 50MA catches up before making new highs. Of the two ways, a retest of the short term support, which is the 30MA in this case, would better guarantee a steady bull trend going forward. As such, it might be a good time to start identifying mid term candidates in order to prepare for an entry when the breakout first reveals itself.
For now, the Dow remains in a short term bull 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
Even though ISM services and redbook reported disappointing numbers, the market still found strength to climb back up from a negative open until the FOMC minutes released in the afternoon. Even though the FOMC minutes were largely as expected, investors still sold off following the release, leading to a mixed close. The sense of the market being overextended is still strong and strong intraday profit taking is now evident. As such, I won't be surprised to see the kind of short term profit taking retreat I spoke of last week.
Technicals
The Dow continues to struggle at its short term 12,400 points resistance level. Such resistance usually resolves itself in two ways; Retreat to retest short term support before rebounding to new highs or go sideways until 30MA or 50MA catches up before making new highs. Of the two ways, a retest of the short term support, which is the 30MA in this case, would better guarantee a steady bull trend going forward. As such, it might be a good time to start identifying mid term candidates in order to prepare for an entry when the breakout first reveals itself.
For now, the Dow remains in a short term bull 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 11:12 PM
0 Comments:
Post a Comment
<< Home