Fundamentals
The Japanese Government surprisingly upgraded its nuclear disaster from level 5 to level 7 as the crisis reveals itself to be less controllable than initially thought. World markets slumped on the news starting from Asia. The US market was hit even though retail data turned in better than expected today. Investors rushed back to bonds, depressing bond yields across the board and traders quickly took put options positions either as a hedge or as a Bearish Strategy, causing a surge in the total equities put call ratio to above par in favor of put options trading.
Technicals
Much to our surprise, the Dow decided to turn down to retest the 30MA today despite being already way off short term overbought condition. Of course this move is more events driven than technical but it will be one which technicians will be watching closely as a failure to hold support at the 30/50MA level will form a big double top formation possibly leading to challenging the March lows.
For now, the Dow turns a short term neutral trend, intermediate bull trend and primary bull trend.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!