Market Summary: Support Holds

The support levels from yesterday that I mentioned appear to be holding at the moment. The strongest index out of the 4 that I follow was the dow which was up about 100 points today.

Notice in the above chart that the pullbacks in the dow range from 2 to 6 days. After such a pullback is completed, the dow tends to rally about 4 to 5 days before consolidating its gains.

Last weekend I commented about the tendency for the dow to rally the second week of the month and that appears to be exactly what's happening. If my analysis is correct, the dow should continue to rally throughout the rest of the week.