AM Tape 022307
Just about 2 Hours after open, Dow, NASDAQ and S&P all have a good churning with impressive volumes on downside.
Looking at Dow’s hourly chart since 020107, Dow breaked through its 12650 support line this morning, which it had tried breaking through last two days. Looking at Dow’s daily chart since Oct 2006, , near term Dow could test 12600, the lower boundary of its upward moving channel, and if Dow could maintain its posture above 12600, we could see Dow to challenge 12800, its upper boundary of the channel.
For bond, bears today seem done with their chewing of CPI numbers, with TNX dropping as much as to 46.6, getting back bond’s loss of the last two days. Of course, there may well be some funds moving into bonds from stocks.
Still, it seems that bonds have set the floor for stocks downside movement today, even though bears in stocks had support of oil, gold and currencies. The Dow may actually be able to stay above 12650 today, that would be a very bullish sign, indicating stock mkt’s chewing of CPI may be close for taking a break.
I have a few trades to be closed.
