We were concerned at the way the Dow appeared to be stalling especially after breaching 9025. These concerns appear justified as we saw the Bears back in the frame yesterday. Its not all doom and gloom though as we are basically moving back into the recent trading range keeping the overall sideways movement intact. Long term the Bears were always in control although we were expecting a little more from the Bulls. We will not be getting too exited about this sell off as dip buying within the range is still the order of the day. Only a print below 8315 would set a gloomy picture once again.
Indicators in play
Sometimes we forget that there are three trends in markets. The up trend, the down trend and the sideways trend. The latter is where we should employ range-trading techniques.
Summary
Its all been covered in the opening comment really with dip buying to 8315 the way to go. There is a good chance of getting an opportunity to buy at lower levels but the stop would be placed fairly tight below this point.
