DOW Confirming a Higher Low

The DOW candle closed above the body of yesterday's bottoming candle to confirm the possibility of a short term reversal to the upside. The DOW is still within it's upward trend channel that formed at it's low in late November.

There will be resistance in the 13,700 area so keep and eye on that area. To the downside there should be some support in the 13,300 area.

If the DOW can't break above the 13,700 level it may chop sideways for a while. So far, the nice bounce we saw indicates that there is still some life in the DOW despite the economic fears that abound in the news lately.

DOW Daily Chart: