The Dow broke away from the 11,600 points resistance zone decisively last Friday after being kept below that level for two months. The move was backed up by good volume, good rising of bond yields across the board suggesting that investors did come behind the move and a good drop in total equities put call ratio suggesting that traders agree with the move and are now trading more call options than put options.
It was truly an amazing breakout last Friday but lets be prepared for a little pull back on short term profit taking on Monday and see how investors and traders follow up with GDP coming up on Thursday. All in all, it was a breakthrough week last week and time to start spotting some good longs.
