Monday Morning Outlook: DJIA Soared 5 Percent; Best Week Since July 2009

Monday Morning Outlook: DJIA Soared 5 Percent; Best Week Since July 2009

Recap of the Previous Week: Dow Regains 10,000 (July 5 - July 12)

Tuesday morning - Bulls in charge, but later they couldn't maintain, Dow + 0.59% gain

Wednesday - Bulls charged and never looked back. Dow + 2.8%. regain 10,000.

Thursday - Mixed. Jobless down. Market is looking for direction. Bulls took charge for the last one hour and Dow 1.2%.

Friday - DOW + 0.58%. Unemployment rate down. GOOG led up..

NEXT WEEK??

As from the Fibonacci calculation - 1070 above or 980 Down?

According to the Stock Trader's Almanac: early week is bullish and Friday is bearish. (Monday - Wednesday)

July expiration day, DOW down 6 of last 9 times.

July is the best performing month according to their records. 60% last 100 years, 54% last 50 years and 70% last 20 years. Very Positive.

This week is 5% pullbacks. According to Cobra's log, all the past above 6% pullback had at least 2 legs down. So his guess is that there may be one more leg down, which I personally agreed with. See the pic here.

(http://lh4.ggpht.com/_APmrYvpA45s/TC0_3Pf6HPI/AAAAAAAAH4c/g9qf0lE3cug/s1600-h/2LegDown[2].png)- from (http://cobrasmarketview.blogspot.com/2010/07/07022010-market-recap-low-could-already.html)

His guess is that June 16 will be the next pivot date for S & P to hit 1099 and June 29 will be a cycle bottom, (based on the magic 9 days cycle shown recently). It is an interesting find and I will focus on that.