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The Dow gained an encouraging 131 points as store sales and redbook turns out positive, setting the stage for an optimistic earnings season.

Both Store Sales and redbook, measuring consumer spending, turned up better than last week which suggests a recovery in the consumer market. This is definitely a great way to set the stage for the earnings season as more and more traders jump in ahead of the earnings season. How the earnings season turns out is anyone's guess but the technicals certainly suggest that investors are greeting it with a lot of optimism.

The Dow broke out and stood atop its 30MA once again, which is the Dow's short term support level. Bullish momentum is also beginning to build up and with the Dow way off overbought condition in a strong intermediate bull trend, it does look set to challenge the 10,000 points level this time round.

For now, the Dow remains in short term neutral trend, intermediate term bull trend and primary bull trend.

Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!