The Dow gained 83 points as ISM index continues to grow.
ISM Index continues to show growth this month, encouraging investors back into equities. Bond yields surged across the board as investors reallocate back into equities. Options traders continues to keep trading in favor of call options as bullish sentiment continues. However, despite today's rally, the market is still largely range bound and it will certainly take a strong number on Friday's Jobs Report for the bulls to continue.
Even though today's rally was encouraging, it is still nothing more than a continuation of the Dow's sideways struggle around the 12,800 resistance zone. In fact, the Dow failed intraday at the 12,800 level today so it is evident that the resistance is still significant. However, the Dow is now off its short term overbought condition and may soon muster enough energy for a breakout. So far, there is nothing in the cards to suggest that the Dow is going to fail at this level once again.
For now, the Dow remains in all out bull trend.