After considerable debate we have seen the Dow Jones Industrial Average close above 9000. This marks a significant 38.8% return from our March 2009 low. Still no celebrating by the market commentators, however. Why? Because they were telling you to "wait for the bottom" and that this rally "is not for real." I'll take a 30+ percent return in only four short months any time. Who cares if anyone thinks the rally is "for real." We have attained our Marketdoc Report goal of a 40% retracement which we first talked about on March 26th.
There are still alot of questions about this economy... the housing market, commercial real estate, energy, etc. Dow 9000 is an important psychological and technical resistance level. Keep in mind the market tends to move on forward-looking indicators. S&P earnings are at an all-time historical low-- with plenty of room for upside surprises. There are plenty of signals telling us we are already in recovery.
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