Heavyweight Week Ahead!

The Dow went totally flat last week, closing a mere -0.95% from the previous week's close. What is of some consolation is the fact that the Dow continues to trade around its monthly 200MA level, which is a level around which the Dow has ALWAYS recovered from. From the short term perspective, the Dow's once again threatening the integrity of its short term neutral channel , looking for a breach of the 8000 points level with its short term bullish momentum already disrupted. If it does so successfully and follows up to downside, its next target would no doubt be the bottom of its intermediate neutral trend channel marked by the November low.

The first trading week of every month are heavyweight weeks as 2 super heavyweight economic numbers get released; ISM index and Job Report (see economic calendar). Consensus for tomorrow's ISM index actually calls for a slightly higher number than last month. From the numbers so far, I can only say that the possibility of investors getting disappointed is still far higher.