Dow Industrials aiming to mark biggest quaterly comeback since 1933

http://www.nbcnews.com/business/markets/dow-could-be-mounting-its-biggest-quarterly-comeback-1933-n541431

The Dow Jones industrial average and S&P 500 officially wiped out their year-to-date losses this week, as the weight of the Fed was lifted from investors’ shoulders. If the Dow can hold its gains through the end of the month, it would mark the biggest quarterly comeback since 1933.

Newsletter

Zero spam.

But if you’re expecting another big move from here, one technician warns you might have to cool your heels.

“I think the problem for the [market] is that it just might not get much better than this,” Rich Ross said Thursday on “Power Lunch” in a “Trading Nation” segment. The Dow has rallied 12 percent from its Feb. 11 low.

3rd Party Advertisement

On a short-term chart of the Dow, Ross noted that the index has formed a double bottom, which is similar to what was seen during the August and September swoon. This type of pattern describes when a stock falls to a low, rallies and then drops to the same low only to rebound another time.

“We failed miserably back in October,” said Ross. “We expect that to happen again.”

Furthermore, he noted that a two-year distributive top on the blue chip index shows that the likelihood of resuming a rip-roaring bull market is slim.

“When you zoom out and look at the weekly chart, you are staring at a six-year bull market with a two-year distributive top,” said the head of technical analysis at Evercore ISI. “I think this marks the end of a bull market.”


Read Original Story...
HEADLINES
Canada, Mexico and Japan want to revive the Trans-Pacific Partnership free trade deal
Defense stocks at record highs after Trump signs $110 billion arms deal with Saudi Arabia
Trump’s proposal to sell oil reserve shows decline in reliance on imports, weaning off OPEC crude
Japan, Trans-Pacific Partnership members to pursue trade deal without the U.S.
OPEC seen extending output cuts as Saudi Arabia says most members on board
Oil prices rise as OPEC, other producers are expected to extend, deepen supply cuts
About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

Speak Your Mind

*

Newsletter

Zero spam.