Dow Pulls Back As Expected...
The Dow pulled back today by 74 points as expected despite better than expected Jobless Claims data.
The better than expected jobless claims released before market opened led to an extremely short positive trading before all out profit taking took over for the rest of the day. Yes, it was a profit taking day as expected of an extremely short term overbought condition. Indeed, even Santa Claus rallies don't go straight up. Like I told paid subscribers yesterday, the Dow is expected to pull back and retest its 30MA these few days before it can muster enough energy to go any higher.
The short term bearish divergence on short term stochastics is still strong, supporting the retest of the 30MA scenario.
For now, the Dow turns a short term bear trend within an intermediate neutral trend and primary bull trend.
The better than expected jobless claims released before market opened led to an extremely short positive trading before all out profit taking took over for the rest of the day. Yes, it was a profit taking day as expected of an extremely short term overbought condition. Indeed, even Santa Claus rallies don't go straight up. Like I told paid subscribers yesterday, the Dow is expected to pull back and retest its 30MA these few days before it can muster enough energy to go any higher.
The short term bearish divergence on short term stochastics is still strong, supporting the retest of the 30MA scenario.
For now, the Dow turns a short term bear trend within an intermediate neutral trend and primary bull trend.
posted by Jason Ng at 6:06 PM
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