What do cowboys, cattle and Guy Adami have in common? They're all home on the range. "And I think the range right now is between 7800 and 9500 on the Dow,” Adami says.
Confused? Look at this chart of the Dow. It keeps bumping its head at the top: 9500 and bouncing off the lows at 7800. In other words it’s range bound.
So what's keeping it roped-in this range? It’s and old fashioned case of tug of war.
Bullish traders who think valuations are insanely low, and don't want to miss the bottom have sent stocks on a handful of triple-digit rallies. But then on the other side, beaten-down baby boomers are using every rally to desperately cash-out what's left of their dwindling retirement funds.
As a result $39 billion has gone out of market this month alone.
Is there any hope for stocks to break out of this range? Or should you consider Tuesday’s rally just another day on the range?
Jeff DeGraaf, ISI head of technical analysis tells us that Tuesday’s rally is far more credible than the past rally a couple weeks ago.
