..as economic data comes in better than expected.....uncertainty remains but growing signs of an impending equity rally are beginning to emerge
Uncertainty surrounding the strength of the Global economic recovery and concerns about a double dip recession remain. Last week was important for stocks as major indices tested supports and rebounded. The Dow was testing the 10000 while our own STI Index was close to testing the 2900 level.
Bearing in mind month end closing/window dressing, the Dow ended last week higher by 2.9% at 10447.9 while our own STI Index added 2.2% and just closed above the 3000 level. It seems that we have moved from a position of excessive optimism to one of excessive pessimism.
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