Stock Market Analysis

Monday, January 09, 2012

Totally Sideways...

The Dow struggled a gain of 32 points as the market continue to go sideways after last week's huge gain.

Fundamentals
There were no economic data or news driving the market today, resulting in a lackluster trading day. Bond yields and total equities put call ratio remained largely unchanged as sentiments remained unchanged from last Friday, which is always a good thing on Monday. Tomorrow's sales data may well provide the catalyst needed for the market to continue, upwards.

Technicals
The Dow continued to move sideways today as I have expected following last week's single day rally. Almost all big up days are followed with a few days (or up to a week) of sideways or slightly negative trading as traders take short term profit. The Dow still needs to find strong support around the 12,200 area in order to secure more upside. This may take the form of either a single day or intraday pullback to that level with the way the economic data is pushing the market right now.

For now the Dow remains in short term bull trend within an intermediate neutral trend and primary bull trend.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home