Dow Gains Despite Weaker Sales

The Dow closed higher by 52 points today despite poorer than expected sales data.

Fundamentals
Sales data turned in largely worse than expected today, putting pressure on a market that has just found some momentum from last week's slew of better than expected data. However, that didn't stop investors from continuing their return back to equities as bond yields continue to rise and options traders continue to trade in favor of call options in a pattern that is predominant during largely bullish markets. All of these continue to give the market a largely optimistic sentiment despite obvious volatility. The next big number to look forward to would be Thursday's Jobless Claims.

Technicals
The Dow is once again right at the 12,200 points resistance with obvious selling pressure throughout the day, taking the Dow off the 12,200 point level itself. With the Dow in short term overbought condition, we may see yet more struggling around this area before it muster enough energy for a breakout but odds now favor a topside breakout in continuation of the volatile bull trend.

For now, the Dow turns a short term bull trend within an intermediate neutral trend and primary bull trend.