Stock Market Analysis

Wednesday, January 04, 2012

Sales Data Beats!

The Dow gained 21 points today as economic data continues to recover.

Despite early short term profit taking, better than expected sales data today encouraged investors to return to equities gradually throughout the day, taking the market back into the green from a red opening. Indeed, the recent trend of better than expected economic data seems to have caught up with investors at last as they cautiously return to the market despite uncertainties in the Euro zone. In fact, this Friday's jobs report might be the catalyst needed for at least a short term bull trend.

A largely sideways day in the market as expected following Tuesday's strong rally. Even more encouraging is the fact that the Dow seems to be holding the recent breakout strongly. Expect a couple of sideways days more and we should see the Dow continue upwards as long as the 12,200 support level holds. When that happens, we could then call an intermediate bull trend.

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


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