The Dow moved sideways today, closing marginally higher by 37 points.
Fundamentals
Chicago Fed turned in better than expected today before market opened even though it was still a negative number. This, along with the generally more optimistic global sentiment before market opened, took the market higher right from the opening. However, investors seeking to sell on any sign of strength in this weak and uncertain market stepped in right away and took the market all the way downwards right from the higher opening, closing it almost at breakeven for the day. Indeed, investors have not forgotten the generally worsening economic numbers so far and are obviously still seeking to exit the market on any strength strategically.
Technicals
With the Dow's 200WMA acting as support right now, there are obviously some significant strength in this area from the trading action today. In fact, short term bullish momentum is now rising on our short term indicators which could lead the Dow into another short term sideways trend if the market follows up to upside tomorrow. Otherwise, a visit to the 10,000 points area would still be in the books.
For now, the Dow remains in a short term bear trend, intermediate bear trend within a primary bull trend.
