The markets are acting very strong and the summer rally continues. The DOW overcame the first resistance point and closed above the last high of 10595 set on 6/21/2010. It is now likely that the market will try to test the previous high at 10,900. With the Fed pumping money into the economy, and interest rates floundering, we are likely to see the market go up. However, we are right around the point where we could see resistance.
I might slowly increase my exposure in the market if the bullish trend continues. As I mentioned in an earlier post, watch IBM closely. Its itching to break into new highs. I would wait to buy until it does set a new high on high volume before buying.
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