Dow Experiences High Volatilty - Can It Attain 18000?

Very surprisingly Dow closed 20 points down in last trading session. It was more intriguing since all factors were pointing to a positive close.

For bulls, the closing tick of Dow was dampening since at the beginning of trade Dow was trading 150 points up. That means Dow dropped 170 points without any rhyme or reason.

Was it because of concerns over Alcoa reporting dismal earnings? And can Alcoa earnings outweigh rally in oil prices? Frankly I do not think so. Alcoa earnings cannot alter market sentiments so much that Dow sheds 170 points intra-day. It has to be simple profit booking at higher levels, with traders making themselves light at the very first excuse..

Volatility was such that Dow from day high of 17732 closed at day low of 17556, a drop of 176 points. That drop without any genuine reason only suggests that today Dow will give a positive close.

But if today Dow again closes in red, then we will have to re-calibrate our sell target downwards from 18000. In such a scenario we will have to square off our buy positions at 17600/17700 in Dow.