Monday, November 9, 2009

Today's Dow Move

Today's move in the stock market continues to be impressive from a price perspective. But, the volume just isn't there. Generally, strong markets show strong volume. With the Dow at a new 52 week high at 10,226.94, one would expect volume in the 400 million range, not 200 million. But, this move could draw in more buyers and sideline money.

The true test, as I have stated previously, will be between the 10,400 range and 11,000. That's where the real resistance comes in if you look at a five year chart (Note: You will have to manually adjust for five years).

The five year chart also provides a much better overall picture, and with volume in the 200 million range, and the Fed not printing, I don't see where the volume is going to come from to buy up all the selling that will come in at these levels. To date it has been a mountain climb for the Dow, but the thin air, cold and straight up rock are just ahead.

I don't see the Dow breaking through, and the longer it takes before it heads downward the greater the crash.

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