Dow Retest A Surging Bull

Dow Jones Industrial Average

Expecting the unexpected can be as dramatic as the surge in stocks coming from several weeks of sliding prices. Technology and the Financials have provided the lift with investors following suit with the much needed volumes to push prices to its biggest one day gain which has covered some ground. A follow through id needed and staying above previous highs would be the key for a validation of directions.

Although, volumes were not considered a volume reversal that triggered a price reversal, it was enough as investors have been dragged again with some positive signals coming from Greece contrary to the IMF global growth outlook on the economy which included the US. However, it was to no surprise that the rally will move on both sides of the market as time and again made mentioned, that this would be the pattern for prices as they swing in both directions. 

Knowing the 'tolerable limits' and 'range parameters' on these price levels are excellent as the Dow continues to hold ground @17500 until now while the recent low on the Dow registered @17714 which pulled back on the day which provided the 1st signal of a probable price change. As a retest to hold above the 18000 on the Dow for the coming weeks would be a critical level. Although, this would be an encouraging sign for long tern trades held since the overall picture remains on the positive tone. 

Remember, that there will always a major correction within a major trend. All we need to do is to be able to pinpoint the pivotal price change on the next turn.