Stock Market Analysis

Monday, April 30, 2012

Dow Continues Sideways On Mixed Economic Data

The Dow closed marginally lower today by 14 points as economic data continues to turn in largely mixed.

Economic data continues to turn in largely mixed today, resulting in yet another lackluster trading day. Numbers today were actually good and support the economic recovery scenario (giving the bulls some reason to be bullish), but are just not as good as expected (giving the bears some reason to be bearish), resulting in yet another lackluster day as bulls and bears slug it out once again. Bond yields remain largely unmoved as investors take a more neutral stance today. VIX is slightly higher today with the slightly lower market so no surprises on that front. Overall, an undecided market ahead of the coming May... are investors going to sell in May and walk away especially since its been a great year so far? It seems likely...

The Dow continues to crawl along the 13,200 points level today, proving it to still be a strong resistance level in the face of plenty of uncertainties in the market. If the Dow turns back down from here, it will complete an intermediate double top formation which can be disastrous. As such, in the face of all of these uncertainties, this is a good time to take profit and sit on the sides.

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


Post a Comment

Links to this post:

Create a Link

<< Home