As the market continues to surge we have seen an impressive breakout above Dow 9000. This translates into a 43+% return from its March low of 6478 to its close today at 9286. It appears that a Reverse-Head-and-Shoulders pattern is all but complete. This is a bullish sign. A typical end target for this pattern would be the distance between the "neck" and "right shoulder." This puts the Dow somewhere around the 10,200 area. A successful test of the "right shoulder" back down to Dow 8000 would actually be a healthy and very bullish sign. The Reverse-Head-and-Shoulders pattern seems to confirm our previously established target for the Dow Industrials between the 10,000 and 10,500 level.
Don't get sidetracked by the investment "gurus" who are telling you this rally is not for real just because they missed it. There are many pieces of economic data which show we are already in recovery. Stay tuned to the Marketdoc Report and you too can learn how to recognize important market patterns such as these while others are scratching their heads wondering what to do next.
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