Market Down Despite Better Sales
The Dow declined by 25 points today despite better than expected sales data and new home sales.
Fundamentals
Better than expected sales data and new home sales gave the market an optimistic start this morning. However, this quickly gave way to a heavy and steep sell off following the new home sales release which brought the market to a low it never recovered from for the rest of the day. There are no strong fundamental reasons to explain the sudden ditch except for the possibility that some institutions are strategically "Selling in May and trying to Go Away" during this final week of May.
Technicals
Even though today's drop was somewhat discouraging and points towards weakening sentiments in the market, it really traded within yesterday's trading range which makes today more of a sideways day rather than a negative one. Even though the Dow closed below its critical 50MA today, it was insignificantly so and it would be more prudent to wait one more day for a clear signal.
For now, the Dow turns 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
Better than expected sales data and new home sales gave the market an optimistic start this morning. However, this quickly gave way to a heavy and steep sell off following the new home sales release which brought the market to a low it never recovered from for the rest of the day. There are no strong fundamental reasons to explain the sudden ditch except for the possibility that some institutions are strategically "Selling in May and trying to Go Away" during this final week of May.
Technicals
Even though today's drop was somewhat discouraging and points towards weakening sentiments in the market, it really traded within yesterday's trading range which makes today more of a sideways day rather than a negative one. Even though the Dow closed below its critical 50MA today, it was insignificantly so and it would be more prudent to wait one more day for a clear signal.
For now, the Dow turns 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 10:51 PM
0 Comments:
Post a Comment
<< Home