The Dow gained 60 points today spurred by global optimism and better than expected economic data.
Fundamentals
A wave of global optimism swept across the global before US market opening, lifting index futures. The optimism was then supported by a better than expected Empire State Index before US market opening, leading to a strong morning session before short term profit takers stepped in in the afternoon. It could be a pretty rough week ahead going by the way investors are going back into bonds and the VIX rising in a supposedly strong day. As such, I won't be surprised to see a few negative days going forward.
Technicals
The Dow has been climbing steadily so far and seems due for a little pullback and a retest of the 30MA or the 12,200 level for support before the market can move on higher safely. There is nothing in the cards that suggest that such a pullback might lead to something uglier, as such, it could make a good accumulation point when it happens.
For now, the Dow remains in a short term bull trend within an intermediate neutral trend and primary bull trend.
