The Bears Scatter As the DOW Breaks to 09′ Highs and Blows Past 10k
Nov 9, 2009 Technical Analysis
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There was a lot of nervousness in the stock market in late October as many were calling a top in the market thinking that the DOW was topped out @ 10k, 2009 highs have been reached, and the only way from here for the market is down. Yet i was skeptical about any of these claims. And instead of even picking up any short positions i just parred back on my longs to minimize risk in case the market did tumble south. Yet i had no conviction of betting in favor of the bears thus no shorts were ever added to the Black Service Portfolio . Now the DOW has made a significant bounce off of the 50ema support and ascending trendline while breaking out to 2009 highs today to close @ 10,219. The bulls are clearly not done yet for the year and momentum continues in favor of the longs. Technically the only thing to worry about now is that we have descending resistance coming up indicated by the red trend line in the chart illustration below which could definitely hinder bull momentum. Yet i think there’s still strength in the market and 11k by year on for the DOW is definitely not out of the question.
Technical Analysis:
