Dow – will the bullish break on charts last?

Daily Chart

Dow.png

Equities love cheap money and thus also love Yellen talk dovish. No wonder then we see a  bullish break on charts.

Prices sit well above channel… but the question is will it last? here are few points to consider..

  • Q1 is about to end and banks may come out with bad results
  • Oil is looking wobbly again
  • and most important, stocks are trading at a level last seen on Dec 17, which means we are back where we were before the first rate hike happened!

Hence, i doubt Fed’s cheap talk. I guess its an effort just to weaken the dollar ahead of the second rate hike

 

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