Bears Go Back Into Hibernation
The longer the bears stay asleep the more the market will feel like Ground Hog day.
The bulls cleared another key test of resistance as they stormed through the bears on Tuesday to set fresh 52-week and all-time highs. We admitted yesterday we were a little surprised of the 500-point rally in a week on the Dow, especially after last week’s drop below support, and we said a few days later it could have been the best bear trap set in years. Mission accomplished.
The Dow jumped 125 points, or 0.9%, to finish at 14,253 and all-time highs. The blue-chips made a steady run higher during the first half of trading, peaking at 14,286, and holding most of their gains in the second half. Resistance at 14,200 now becomes short-term support followed by 14,000. There is a chance the Dow trips 14,500-14,750 on continued strength. If there is a bullish run until March 22, like we expect, then maybe these targets are triggered. If not, we will have to see if support holds and if the dips are bought.
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