Short Term (lasts a few hours to a few days): In yesterday's short-term outlook we had stated that
"Moving higher, more selling volume was generated, what is especially
interesting is how the index will respond to that volume. Does it generate more
and continues higher or comes down quickly?
The probability is that the
index will move lower because of the amount of selling surges added at the end
of session. There maybe strength that will continue the index higher, perhaps
only in the morning."
The market has its way of being chaotic and today's
trading marked the eighth largest gain ever for the Dow. Interestingly, all the
trading generated more and more selling volume.
Today's strength will no
doubt propel the index higher however, the probability is that there will be
more strength in the morning than at the end.