Dow 30 Feb 04 to Feb 08 Outlook

Recap
What normal? Another continuous drift higher until round number 13900 was tagged. Led to the usual 100 points pullback. Then extreme reaction to the level with a gap up and go to tag Dow cash 14000 level first time in many years.

Outlook
Dow indeed having a tight range week after the strong breakout move the week before last. The unusal gap not fill scenario is again a repeat of what happened last year. It is no longer a surprise.

Looking for a short term top to be formed soon. This week produced an important swing low that we now finally can use to definite the up trend. Breaking of the up trendline from here will give us the signal for a more significant pullback.

As long as that has not happened yet, Dow will continue with its up drift behaviour.