Dow surfaces above 10,000: but can it remain above it?

By Money Matters Editors

Since the Dow is above 10,000 let’s briefly re-examine the world's most closely monitored stock market index, this time from a technical standpoint.

If the Dow can close above the psychologically-significant 10,000 mark for three straight sessions, that would be a bullish sign. Thursday was the second straight day, so Friday (obviously) looms large. Given that Fridays during sluggish-to-recessionary economic times are usually down days for the Dow, Friday represents a formidable hurdle for Dow 10,000.

Dow 10,000? The real thing or a mirage?

By Money Matters Editors

Dow 10,000. Is it that important? As Shakespeare wrote, in Romeo and Juliet in 1594, “What’s in a name? That which we call a rose, by any other name would smell as sweet.”

Well, those market analysts who use technical analysis would argue that Dow 10,000 is a psychologically-significant level and name, but it’s not a technically-significant level.

Technical analysts say the Dow might close above 10,000 for a day, then fall back – and if it does, that would be bearish for stocks. Conversely, the Dow might pull-back considerably - technicians call it a correction - then rise above and close above 10,000 for three straight days, and if that occurs that would be bullish for stocks.