Markets Best Day in 3 Months Gets Wiped out By Drop in Consumer Confidence. DOW Slides 250 Points
Oct 30, 2009 Stock Market News, Technical Analysis
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Its been yet again quite a volatile session as we press on through earnings season. Yesterday the GDP #’s skyrocketed the market up nearly 200 points but headlines were cluttered with skeptics about being able to sustain growth into the future. The skeptics thoughts certainly played out in the market today as the dow slid 250 points to close @ 9712 while consumer spending fell .05 in september making it the largest drop in 9 months. The Dollar also rose today further weakening the market and breaking down OIL.
Today the DOW formed a bearish englufing candlestick pattern which suggests further movement to the downside into next week. Yet conflicting this signal is the 50ema support which is where the DOW last rallied strong on the rebound. Overall the market is still medium term bullish as price remains in the ascending trend wedge.
Technical Analysis:
