Quiet Week Ahead...

Unemployment rate reported in higher than expected last Friday at 10.2%, beating consensus of 9.9%. In fact, that was the highest unemployment rate since 1983. However, that didn't stop investors from keeping the Dow above water on Friday, closing the week up by 310 points ( 3.20%).

Last week's market action has once again been largely technically driven with investors pouring in at the 50MA line, driving the Dow onto the 10,000 points level again. Other than a lack of volume, last week's market action has been extremely encouraging with the Dow still way off short term overbought level, giving it plenty of room to move to upside. So, is the 10,000 points over? It will if the Dow beats last month's high and then retreat to rebound off the 10,000 points level again. That will set the 10,000 points level as a support level and leave the Dow with plenty of upside. This is a quiet week ahead with no major releases (see Stock Market Calendar). Last week's numbers paint a clear picture; the economy is recovering but it takes time for firms to start hiring again, which still leaves plenty of good news for the future to drive the Dow higher. I actually think it is a good thing.

For now, the Dow remains in a short term bull trend within an intermediate and primary bull trend.

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