We always like to analyse the dancing movement of DOW during the day to gauge the sentiment of the US market. As an example yesterday, Dow decreased at one point to 100 points to end 40 points down. One major reason is now the index is at the 200day MA (around 13000), which is a resistance.
A good sign that this market cant drop much is when every drop is met with a buy up. This is what happened yesterday. Today, the DOW went down 40 points and ended in positive territory also in mid-day. Although it is best to see how the movement is only when the market close, but this comeback in mid-day is still a sign of bullishness in the market.
We would think that DOW is just buying its time to wait for the chance to break 13000 with a GANGNAM Style horse dance. :) Perhaps it might happen soon. Let us monitor.
The market just need a piece of good news to light up the horse. Perhaps it may be the jobless claims this thursday or the Chicago PMI (a report on manufacturing) this Friday or whatever.
We just need some spark. Let us see how the DOW dance around round the 200day MA. The longer it sticks to the MA without dropping, the more powerful and likely it will break.
Although market may be slightly bullish now, do note that next week is a JAM PACKED week filled with economical reports. My only concern would be the jobs reports that happen on Friday. I would have to do an analysis this weekend to know if there is a danger of missing the expectations.