Dow Made 7% Week...

What a week is was last week as US economic data turned in consistently stronger than expected, giving the market a much needed boost. In fact, the Dow made a huge 7% run last week on a week-on-week basis, which is totally phenomenal. This took the Dow once again to the doorway of the 12,200 points resistance zone, which it failed to break last month after multiple testing, in a slightly short term overbought condition. With a quiet week ahead, we might see the market succumb to a bit of selling pressure like we saw last Thursday and Friday before it muster the kind of strength needed for a topside breakout. The Dow looks very much set in a volatile uptrend with huge ups and downs, pushing each peak slowly upwards until perhaps a resolution of the Eurozone issues. Investors definitely ran back into the safety of bonds last Friday, depressing bond yields across the board but trader sentiments continue to be more positive than negative as total equities put call ratio remained below par for 5 straight days, something which we have not seen since the July correction. All in all, I do see a topside breakout coming up, perhaps next week?