First Week of June 2011

Welcome back from the Memorial Day long weekend! The Dow retreated 0.56% last week on a week on week basis as economic data continues to turn in worse than expected.

Even though it was a net negative week last week, the market was still a strong one as it bottomed out and reversed on last Monday's drop. Even though the Dow is still trading within the trading range of last Monday's drop, the strength it found around its daily 50MA is extremely encouraging and do result in more upside than downside possibility. However, on the short term, the Dow still needs to get atop the 30MA before it can safely make new highs.

This is a holiday shortened week but still a heavy weight one as it is the first week of June. As such, we will be getting the ISM index on Wednesday and Jobs report on Friday (see Stock Market Calendar). Inline with most of the leading indicators that were released, analysts are expecting a lower ISM index and nonfarm payroll which can result in some volatility this week. Indeed, the US market is in a volatile uptrend now and continued volatility is to be expected.
My Market Analysis Sent Straight Into Your Email Daily For Only $5/Month! **My analysis will only be posted here once every other day.