The Dow moved sideways, gaining 14 points today in a quiet day without any major economic release.
Investors bought into the encouraging jobs report last Friday but buying remains somewhat lackluster as investors continue to be cautious. Bond yields remained relatively unchanged as investors are reluctant to move back to equities in a big way. Total equities put call ratio continue to linger in the 9.0 to 1 range as options traders continue to be uncertain as well. Indeed, this is yet another period of uncertainty due to uncertainties surrounding the Syrian issue. However, it is expected that whatever effect the Syrian issue may have on the market will be short term. Over the longer term, the US recovery scenario remains intact.
The Dow has successfully climbed back above its 30MA since my last post and will now challenge the 13,000 points resistance level. It is going to be a hard level to break but with the Dow now short term oversold, along with a nice 30MA retest continuation pattern, the Dow now has a real chance at breaking the 13,000 points level.
For now, the Dow remains in short term neutral trend and intermediate, primary bull trend.