Dow Jones has made such an incredible comeback that it is 500 points off its high of 13338. On Friday Dow closes at 12880 points. 2 weeks ago, we have announced that our market sentiment indicator shows us that S&P500 stocks have turned bullish and it may be time to accumulate stocks. We still believe so if you can hold on to the stocks. Check our article:
Of course, we also mentioned that this week is an important week. There will be ISM report coming out on Monday and Non farm payroll on Friday. Wednesday is an off day as it is independence day 4th July in US.
Our opinion is that Monday might start off slow after the powerful up day for all index on Friday. A lot of people might be waiting to watch the ISM report first. On Tuesday, there might not be much movement in the US market ahead of Independence day. Thursday and Friday's Jobs reports in ADP employment, Non farm payroll and unemployment report will be key to the movement of July.
Market strategy suggestion for this week:
1) We forecast (pls note this is a forecast only) that ISM might be better than expectation after Chicago PMI beats its forecast last Friday.
2) We forecast that non-farm payroll MIGHT miss expectations again by a little based on our research. So the best way is to PROFIT TAKE before Friday's US Jobs reports as we would not want to take the risk of missing the expectations again! There will be chance to go Bullish after confirming that Jobs reports turn better!
Overall, I do not anticipate much movement this week until Friday, unless Europe again release news that rocks the market.