The Dow gained 72 points today on bargain hunting.
Fundamentals
The US market did an impressively positive day today in a quiet day without any major economic releases. Nothing much has changed since my post last week, the better than expected jobless claims last Thursday also failed to provide the stimulus needed for a true breakout. The leading indicators coming up for the rest of the week might just do the trick but trading is still expected to be conservative ahead of the President's Day long weekend. Even though the market has been largely sideways for the past week, I still took a nice 43% profit on HES using my Star Trading System. My leveraged managed account service will also be launched this week with an expected reward risk ratio of 6:1, email me at founder@mastersoequity.com if you wish to be on priority list.
Technicals
The Dow continues to bouncing along sideways atop the 12,800 points resistance zone. However, it is now way off short term overbought condition and its 30MA has already caught up with it and provides short term support. This means that the Dow is once again ready for a breakout and that might happen on the back of better than expected leading indicators coming up this week.
For now, the Dow remains in all out bull trend.
