Dow Jones Will Go Up

Futures rise, combined with gains in Asia, signal a upward shift for the Dow at the start of the week. With the effects of the auto bailout settling in after last Friday’s rocky session, news that China and Denmark are taking action to add liquidity to the system should contribute to propel the market up, offsetting reports of production cutbacks in tech industries, Toyota’s first-ever losses and the continuing shock waves of the Madoff scandal.

As a plethora of analysts starts to forecast a stocks recovery in 2009 in spite of the continuing grim economic data, the extra liquidity is expected to begin trickling back into the market, with investors slowly reversing the selling trends.

Assessment
Expect a slight rise at the end of a volatile session.