Still Stuck In a Lateral Trend

The DJIA is back above the 13,200 level but not high enough to break out of the lateral trend that it has stumbled upon since it closed below its 50 day MA back in late July. At this point, it wouldn't take much positive news to lift the DJIA over its 50 day MA. And if this were to happen, whether it would be able to stay above its 50 day MA is an entirely different question. It will take some strong positive news to help ease investors fear on the credit markets and sub prime mortgage fiasco. Still, a rally from this point is not entirely out of the question. On the flip side, it wouldn't take much negative news to send the DJIA back under 13,200 either. If your looking for a definite answer as to the markets future direction, you're out of luck. I am not a fortune teller and I cannot predict the future direction of any market or stock. All I do is analyze the situation and the possible future scenarios. The best advice that I can give you is to enjoy the extended weekend and holiday. September is right around the corner so enjoy your vacation while it lasts. I know I will.