Dow Retreats... As Expected...
The Dow retreated 40 points today on worse than expected Empire State Index but if you have followed my blog, you know what I've always said; Its normal to have a few sideways or slightly negative days following every single day rallies. So the Empire State Index today merely provided the reason for a small, insignificant retreat.
As I have predicted in my post last Wednesday, the Dow did its real breakout following the FOMC announcement indeed. All the tell tale signs were there before the release so there was no magic involved. This breakout also broke the Dow out of an extremely volatile pattern we saw in the March to August period and would lead the market much higher from here. However, for the short term, with the huge single day rally and the Dow in short term overbought condition, we should still witness plenty of profit taking for the rest of the week leading up to Friday's Quadruple Witching day.
For now, the Dow remains in all out bull trend.
As I have predicted in my post last Wednesday, the Dow did its real breakout following the FOMC announcement indeed. All the tell tale signs were there before the release so there was no magic involved. This breakout also broke the Dow out of an extremely volatile pattern we saw in the March to August period and would lead the market much higher from here. However, for the short term, with the huge single day rally and the Dow in short term overbought condition, we should still witness plenty of profit taking for the rest of the week leading up to Friday's Quadruple Witching day.
For now, the Dow remains in all out bull trend.
posted by Jason Ng at 7:51 PM
0 Comments:
Post a Comment
<< Home