Wall Street toasted six weeks of heading in the right direction, but some analysts think the rally has to be tested by profit-takers and short-selling bears. Increasingly, however, there are those who say this rally could be sustained for a month or two.
By the way, this week’s corporate reports in the USA are a major show with an avalanche of results bound to have either positive or negative impacts on the market.
These markets are in resistance levels territories, so this week will be interesting.
Better-than-expected results from General Electric and Citigroup, and the best reading on consumer sentiment since September helped the bulls.
Economics-wise, the leading US index readings, homes sales figures and durable goods orders should be important indicators, with more and more US economists backing the idea of a second-half economic recovery.
Local economic stats won’t be market movers, but the RBA minutes, which are out this week, will get a few economists excited.
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