Quote:
Originally Posted by Vanity
Can't really tell you that. All anyone can say right now is that: DOW has failed 6 separate days to reclaim and hold 13,000, and that the markets only went up +14 points on good jobs data and Greece deal finally finishing. So it's close. The bigger question is where it will fall and what might the catalyst be.
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This. If nothing major/severe happens in the global economy, such as war in Iran or chaos in Europe, I believe a 5-10% pull back would be healthy for the markets. If something catastrophic does however occur, it could be a large pull back. The drop on monday, was in my opinion quiet healthy for the markets. The DOW was very close to breaking its trend line, but managed to comeback throughout the week.
As everyone knows, the markets react first than think later, which is why the markets rallyed on through the week, after fears of greece started to slowly fade (even though they did technically default just a "structured" default).
What I find interesting is how the Dow Transports and the Russell 2000 arent having the same rallys as the rest of the sectors (possibly due to rising energy prices for the Dow Transports). The Russell 2000 however is showing that the little guy is indeed staying out, which could mean that all the people that are going to buy into this rally could have already bought in, symbolizing that the markets maybe running out of steam.
Just a quick post for the week.
