Double Top Coming Up?
The Dow continued sideways today closing marginally higher by 13 points.
Fundamentals
Economic data continues to be volatile today as jobless claims was higher than expected and Durable Goods Orders failed to please due to a sharp increase due solely to Boeing's aircraft orders. The Dow opened downwards sharply but found some bargain hunting towards mid day to close the day marginally higher. Even though it was a positive close, there were no strong bullish sentiment echoed in the bond yields nor total equities put call ratio typical of truly bullish days.
Technicals
It truly was nothing more than a sideways day in the market today. In fact, it looks more and more certain that the Dow is going to turn down strongly to meet and test its 30MA soon. If that happens, it would also form the dreaded intermediate double top formation. As such, this is time to be careful about bargain hunting.
For now, the Dow remains in short term bull trend within an intermediate neutral trend and primary bull trend.
Fundamentals
Economic data continues to be volatile today as jobless claims was higher than expected and Durable Goods Orders failed to please due to a sharp increase due solely to Boeing's aircraft orders. The Dow opened downwards sharply but found some bargain hunting towards mid day to close the day marginally higher. Even though it was a positive close, there were no strong bullish sentiment echoed in the bond yields nor total equities put call ratio typical of truly bullish days.
Technicals
It truly was nothing more than a sideways day in the market today. In fact, it looks more and more certain that the Dow is going to turn down strongly to meet and test its 30MA soon. If that happens, it would also form the dreaded intermediate double top formation. As such, this is time to be careful about bargain hunting.
For now, the Dow remains in short term bull trend within an intermediate neutral trend and primary bull trend.
posted by Jason Ng at 6:39 PM
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