Bulls & Bears Both See Opportunity
Since the most recent rally began on April 2nd, here has the succession of up and down days. Up, down, up, down, up, up, down, up, down. We have not seen back to back down days, just like we never saw back to back up during the entire one month crash. Obviously, the current situation is on a much smaller scale. Wednesday was a down day and as I mentioned on CNBC on Tuesday, it looks like stocks may have hit a temporary ceiling. We will see if the bulls come right back to work on Thursday or if the bears are ready to make a stand and confirm a small pullback.
Below is the Dow Industrials and you can see the rally has paused at 24,000 which is roughly half way back to its highs from the lows. Many first rallies from a low often stop between 40% and 60%. My old blue, horizontal lines remain on the chart where I first thought the bounce would lead. Further upside by the bulls should lead to Dow 25,000.