Yesterday I posted the monthly chart of the FTSE100 and the bullishness of the move up since the new year began was clear to see. Today, I post the Dow monthly chart which again shows a strong bullish case. The FTSE tends to follow the Dow, so no one should be surprised that the latter is also getting a little ahead of itself. Yesterday there was some pretty poor news concerning consumer confidence, perhaps as a result of fiscal cliff jitters in December, the market shrugged it off. The Dow has a look about it that it wants to go higher, especially as 14000, a nice round number is within reach, it would be a surprise if it didn't go past it soon regardless of news.
However, there is a risk of complacency setting in after this start to the year which could easily pull those who have been sitting on the sidelines in just when the smart money begins to sell out. A pullback has to come, just a question of when and by how much.
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| Dow Monthly |
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