Legend For Phase Chart:
1: Recovery-1: Warning
2: Accumulation-2: Distribution
3: Bullish-3: Bearish

Saturday, July 17, 2010

Dow Is Back In Bearish Phase



Market got their first big sell off after a week of gains that carry the Dow Jones Industrial Average to 10,400 level. Bears got the sell off that they were looking for on Friday with a drop of 261 points. The index is now below its 50 and 200 day average, driving the market back into “Bearish” phase as indicated in the phase chart.

Earning results gave stocks like Alcoa and Intel a good bounce. However, they were not able to hold onto their gains.

This market looks to be following the “Buy on rumors sell on news” syndrome. With the index now back in “Bearish” territory, good earnings results may not be able to drive the market higher.

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