Where is market heading?

We had a big rally since Feb 2010. Market was up almost 12% at time without any profit taking. Since starting of May, the institutions started taking profits and hence the market was expected to go down..

This was coupled with couple of Scary Boos..

1) Greece Debt - Chances that Euro will discarded as money making EU nations might pullout of Euro..

2) Unusual usage of Derivative esp. e-Mini futures by hedge fund

3) NYSE not able to keep up with orders and other stock exchanges going around NYSE and having markets go down 1000 points..

Techically, the markets have broken the uptrend and along with all the scary boos.. Overall market is gyrating downwards..

Fundamentally, companies are strong...., Last year's economic depression have made companies lean, hence we are seeing double punches.. Revenue # are up and operating expenses have been trimmed down.. So final #s, EPS are above the normal figures. .and will continue as we are seeing the GDP grow towards 3%...

This is good time to get into fundamentally strong companies like Apple, Oracle, Cisco, Proctor and Gamble etc(look for operating #s above debt). Also the High dividend yielders are a overall good choice.