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The Dow Jones had a positive session on Friday again after the Federal Reserve announced new quantitative easing on Thursday. However, we gave back some of the gains in order to form a bit of a shooting star. This of course is a bearish sign, but we think this will simply lead to a pullback at best, not some type of selloff.
We still believe that the 13,000 level is significant support, and we even see it extend all the way to the 13,300 area. Because of this, we are buying pullbacks that show support via the futures market, the ETFs market, and possibly even dividend paying stocks in the index. As for selling, we will not do it until we get below the 13,000 level on a daily close.