OUTLOOK
The Dow trades cautiously and ends with slight gains ahead of this week's FOMC rate meeting, stream of earnings reports, 1Q GDP announcement, and the monthly jobs data. The index continues to linger at the 12800 level unable to make a decisive breakaway after piercing resistance last week. We continue to focus our attention on this area of concern mainly because the intermediate and short term trends converge near this level and it is an inevitable consequence that the index will either break above or bounce off the down trendline. Technically it means that we will soon get to know whether the short term uptrend is merely a correction rally or the beginning of a trend change that could ulitimately lead to a consolidation or an new uptrend. However, until we see objective evidence to the contrary, we are constrained, for now, to side in favor of the intermediate downtrend.
PRICE AND TURNOVER
Close: 12,871.75 * Change: -20.11 (-0.16%) * Volume: 598.9M
MARKET BREADTH
Net Adv Issues: +572 * Net New Highs: +10 * Net Up Volume: +247,665,182
TECHNICAL ANALYSIS
Major consolidation * Intermediate downtrend * Short term uptrend * Support 11,700 * Resistance 12800
The Dow trades cautiously and ends with slight gains ahead of this week's FOMC rate meeting, stream of earnings reports, 1Q GDP announcement, and the monthly jobs data. The index continues to linger at the 12800 level unable to make a decisive breakaway after piercing resistance last week. We continue to focus our attention on this area of concern mainly because the intermediate and short term trends converge near this level and it is an inevitable consequence that the index will either break above or bounce off the down trendline. Technically it means that we will soon get to know whether the short term uptrend is merely a correction rally or the beginning of a trend change that could ulitimately lead to a consolidation or an new uptrend. However, until we see objective evidence to the contrary, we are constrained, for now, to side in favor of the intermediate downtrend.
PRICE AND TURNOVER
Close: 12,871.75 * Change: -20.11 (-0.16%) * Volume: 598.9M
MARKET BREADTH
Net Adv Issues: +572 * Net New Highs: +10 * Net Up Volume: +247,665,182
TECHNICAL ANALYSIS
Major consolidation * Intermediate downtrend * Short term uptrend * Support 11,700 * Resistance 12800
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