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At the end of this year 2010, Wall Street is in overbought position, where both the Dow Jones, Nasdaq and S & P 500 has rallied since last September, although in mid-November was corrected shortly. What about market trends in 2011?

Based on some fundamental indications last, where U.S. economic data improved lately. This makes the improved market confidence. Industry and energy sector got a blessing with rising commodity prices, projected sales of technology products and increasing consumer spending.

The instigation of the things mentioned above, then the market is predicted to rise again. The stock index S & P 500 is even believed to be ignoring this overbought status by continuing to rally, even in the year 2011. For the S & P 500 index, the increase in this sector could encourage the rise in the S & P 500 index by 17% by 2011 from current levels.

Some in the industry will recover next year as the weakening U.S. economic recession, even the financial sector is believed to begin to squirm again.

Such conditions make the stock market will move better over previous estimates. In other words, the market will move above the "normal" even though economic growth is not fantastic today.

Since March 9, 2009, S & P 500 Index has climbed 75% from its lowest position for the trust will market the U.S. economy. P / E ratio of 15, below an average of 16.4 since 1954.

The increase in the price of the shares at the end of the year, in the week between Christmas and New Year as a Santa Claus rally, cheer the market will likely carry over until the end of the year. Investors feel optimistic about the condition of next year. Action will certainly encourage investors to buy index rising higher. This step is a prefix of investor anticipation of the January Effect phenomenon.

Good investing, hopefully in 2011 will be the year of your success, Have nice trading ..