Dow Jones Industrial Average (DJIA)
Rallying as forecast, Q2 will see plenty more upside yet, with any hesitation this week having decent support at 12,280 down to 12,180
• Last week we said The Dow’s quarterly chart shows us a band of resistance from about 12,320 to 12,520, which is within range for the next week or two. With the close at 12,376 and a high for the week at 12,419, 12,650 will not be long in coming, and we doubt it will stop there either.
• Although we might be termed a tad cynical we are convinced Bernanke wants the market to climb as high as possible before QE2 ends in June, and in our view we can see a scenario whereby 12,500 is taken out, and the Dow spikes just above the 13,000 mark.