The Dow continued to move sideways today, gaining 6 points in a quiet trading day.
Fundamentals
The US market continues to trade in lackluster fashion today in a day without any market moving news. The overall market also received very little boost from Apple's decision to open up its treasuries and pay out dividends following Steve's death. Investors did continue to move back into equities as bond yields rose across the board. Looking at the stock market calendar this week, it seems like the heavy day would be Thursday when we will not only get the weekly jobless claims but also Leading Indicators (see Stock Market Calendar).
Technicals
No surprise today as the Dow continues to move sideways as I have predicted last week. Indeed, three to five sideways or slightly negative days following huge single day rallies are commonplace as short term traders take profit off the table while investors continue to buy in. With the Dow still in short term overbought condition, we could still see the Dow come down and retest the 13,000 level for support before it has the energy to move upwards steadily for new highs.
For now, the Dow remains in all out bull trend.
