Dow's rally looks like what technicians call a 'dead cat bounce'

The Dow Jones Industrial Average's rally Tuesday is looking like what technicians refer to as a "dead cat bounce," which could be interpreted as worrisome for bulls. "[A] Dead Cat Bounce (DCB) is a term for a failed rally after a sharp decline," according to the Market Technicians Association's Knowledge Base. The Dow was up 227 points in midday trade, but had been up as much as 434 points at the intraday high of 16,100.11, which was reached at about 9:34 a.m. Eastern. That high failed to reach Tuesday's high of 16,313, hit at 11:23 a.m., which in turned failed to reach the high of Monday's......(read more)

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