Dow rallies over 9000 closes at 9069 - July 2009

As shown in the post Dow trading range. There is now a tight range that the Dow currently trading in; a breakout took place (closed at 9069 23 July 2009) on the upside trading over the Dow trend line 3 of 8945. This occurred on the close of trading 23rd July 2009. As discussed in previous posts we may see continued rallies of the Dow towards the end of the year, although rallies may peak in early September 2009 at 9315.

As discussed in Market correction could be on it's way - June 2009, although the June 2009 market correction didn't amount to anything. It should be noted that the overlay on the Dow Graph is American express (refer to link on graph). On speculation that American Express at one point will be trouble and could eventually (if another credit crisis hits) be knocked out of the Dow.

This just came in when the US markets closed for trading 23 July 2009, From Bloomberg:

"American Express retreated 5 percent to $27.99. The credit- card issuer reported second-quarter sales of $6.09 billion, or 1.4 percent less than analysts projected. Net income from continuing operations decreased 48 percent to $342 million. "

Current Dow futures are down (poor earnings from Microsoft, Amazon and American Express) although a bigger sell off may be months away depending on worst news.

At this point we have large divergences of Volume against the OBV and MFI. American express looks extremely overbought so we may see the Dow fall back into the 8900 range again.

Please refer to graph (click for larger image)