Overview
We saw a second day of gains for the Bulls and have now taken but all buta whisker of Monday’s losses. If we could keep this going and take out the high from the 28th of November at 4323, we would then be in a patternof higher peaks and troughs. (See Charles Dow) If we did see a slip back today we have some intra day support at 4098.5followed by yesterday’s low at 4043. A print below the first of these would bea warning sign and a breach of the latter would see the Bears flex their muscles once again.
Indicators in Play
Charles Dow defined the basic principles of a Bear market as one that is producing lower peaks and troughs on each swing. The opposite applies in a Bull market.
Summary
We are dipping our toe with the Bulls again and are hoping not to see another unexpected sell off like Mondays. Our stop is below 4098.5 with an intention to increase longs if 4323 were taken out.
