We do not expect the market to drop much given the strong economical reports data this month. On Wed, ISM report reflected a figure better than the analyst's expectations. On Thursday, the ADP employment report, the actual figure is tremendously good with 215K compared to 134K. Like what we expected in the previous article, the jobs report should be good this month.
Although the ADP results is considered fabulous, as yesterday DOW rises too much, more than 300 points, it is normal that now DOW is only up by 16 points.
We are looking forward to a better than expected non farm payroll 2moro, Friday. This probably might propel the market forward a bit. But bear in mind it is Friday. Expect some investors to take profits going into the afternoon session.
Next week is the start of the earnings season with Alcoa giving its earnings results on 8th Jan 2013. Like what we mentioned, we expect companies to be doing well for this quarter earnings.
Hence we are maintaining our view that the US market will sustain its good run in january.