Dow 30 Oct 08 to Oct 12 Outlook

Recap
Daily uptrend was broken but you cannot beat b.s. spreading from Europe again. The resistance at B-0 was destroyed right off the beginning of the week. After pullback to fill the weekly gap below, Dow just gap up everyday to print its new year high. Closed the week near Y+1.

Outlook
Very disturbing pattern – whenever euro zone is showing cracks, or some bad news driving the prices down, we get these rumors, false information, etc. to stop the stock markets from falling as if an invisible hand is there putting a floor in place.

As I mentioned before, false rally in stock market can turn into a real one, if renew buying is created. It seems like that is the goal right now – absorbing all selloffs to see if it is possible to lure retail investors to start buying stocks again.

If Dow finds support at 13450 and refuses to go back down this week, we could be looking for a massive breakout to the upside in the making.