Markets are always interesting – even when they are not doing anything they are interesting. The thing that interests me most about this is that the Dow did not go down, although one possible interpretation of this could be that it is simply a relief rally. That is we are relieved that we didn’t wake up and find ourselves floating in the Atlantic ocean.
Two points strike me.
1 Resistance/Resistance/Resistance – as price pushes higher it will come into sellers who see it as an opportunity to exit positions. The question is will these sellers be more aggressive than potential buyers. You will only know after the event.
2. Long term – the longer term trends are intact.
DOW – 13,040 is a 38.2% Fibo retracement level.