The Dow gained a marginal 15 points today as the bulls struggled against the bears.
Fundamentals
The optimistic Chicago Fed released before market took the US market higher right from the start all through the morning after this President's day long weekend. Early strength was quickly taken back by a horde of marauding bears, taking the market back all the way down to the breakeven line. Investors still reallocated back into equities, raising bond yields across the board and options traders continue to trade in favor of call options. As such, today's afternoon weakness is likely only a short term profit taking action.
Technicals
Resistance between the 12,800 and 13,000 area is extremely strong right now and with the market overdue a significant intermediate retreat, this could be dangerous. The Dow needs to hold above the 30MA to stay safe but its really just a matter of time now the correction begin.
For now, the Dow remains in all out bull trend.
