Dow 12,000 psychological level may still hold

Although traders and short-term speculators did manage to push the Dow down below the magical 12,000 level today, they only did it by a mere 45 points, so I would be careful about concluding too much about the 12,000 level "not holding." Give it another day or two to either bounce back or to see a more substantial pullback.

 

A couple more decent economic reports could do the trick.

 

But, ultimately, it is the longer-term economic outlook for the next several quarters of 2012 that will drive the larger stock market trend.

-- Jack Krupansky