Dow Still In Trading Range

The Dow was able to finish up for the week, which is only the second time the Dow has been able to do so in the last 7 tries.  The Dow was able to finish the week out with the highest close since October 13th.  In one of our previous posts, we called for a sideways trading range until the market would make up its mind on which direction it ultimately wanted to breakout.  The Dow unlike the Nasdaq was able to hold its low set on October 10th.  This is a bullish sign as the market was unable to bust the Index down.  Now the only thing left is the top of the trading range near the 9,800 to 10,000 level.  There is no doubt the bulls are going after this level on the very short-term.  The likely catalyst for this bullish move will be the outcome of Tuesday's election.

Dow Daily Chart

Notice how the Dow has not given back any of the 800+ point rally that took place on Tuesday.  Also, the volatility associated with the last 15 minutes of the trading day has begun to dissipate.  These are all bullish short-term signs as the market attempts to stabilize.