The Dow went sideways today, closing marginally lower by 1 point as better than expected economic data brought the market back up from a red morning session.
Fundamentals
Weakness in European market led to a negative opening session this morning but was rescued by better than expected Pending Home Sales and Dallas Fed. Economic data continue to pour in better than expected recently, providing the support the market needs to move further. This is the first week of March 2012 and of course we would be getting the two super heavyweight economic data; ISM Index and Jobs Report. Better than expected performance on these two numbers would certainly help the market break out of the current stalemate. Investors rushed back for the safety of bonds today, depressing bond yields while options traders continue to keep total equities put call ratio close to par as uncertainty continues in the market.
Technicals
The Dow is currently up against an extremely strong 13,000 points psychological resistance level. The Dow usually makes a significant retreat to perhaps the 50MA level in the face of such strong resistance before it has enough energy to stage a breakout. In fact, we could see such a retreat occur even with better than expected data over the next few days.
For now, the Dow remains in all out bull trend.
Technical Bulls and Bears Battle It Out!
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.
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.
What Are Debit Spreads?
Wrote a free tutorial on what Debit Spreads are for Optiontradingpedia.com.
Enjoy your President's Day holiday!
Enjoy your President's Day holiday!
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