A Few Thoughts Before the Open:
Despite yesterday’s late market surge, the major market indices are still in an oversold position. I think we are in a position where we will continue to see several hundred point moves in the Dow on a daily basis.
While it may be tempting to think the market will quickly recover following a 400+ point gain in the Dow, my thoughts are that we will not see the Dow move back to the 12,000 level anytime soon. I would be fairly surprised to see the Dow trade significantly above its 200 day moving average which is currently around 11,500. My expectations are we may see a few more days of gains before the Dow moves back to toward the mid 10,000 level.