July 22, 2009 (FinancialWire) (By Dr. Joe Duarte) –Goldman Sachs (NYSE: GS) has a year-end target for the S&P 500 of 1060, but if the market continues on its current path that number could be reached within the next month or two, barring any nasty surprises.

To be sure, it’s easy to get caught up in the hype of a nice rally. Yet, this one got a nice momentum thrust last week on July 13 and 15 when the NYSE ratio of up volume to down volume was 10 to 1 and 22 to 1, respectively. Those two days qualify for what Martin Zweig described as a “Double Barrel Buy Signal (DBBS)” in his classic book Winning on Wall Street.

The DBBS has lost some of its luster in the past few years as it delivered several duds. Yet, when you get two big up volume/down volume days that close together in the face of a rising tide of pessimism, you have to take them seriously, especially when the market continues to climb.

There are plenty of potential reasons for the market to continue to rally. But the biggest one is that very few believe that it could. And that’s what the pros call the old “Wall of Worry.” Until everyone gets happy and the delirious calls for Dow 11,000 by the end of the year start to appear, the odds of higher prices remain on the side of the bulls.

That said, it pays to remain cautious. After all, politicians have yet to leave Washington for their summer break.

The Investrend Economics Calendar lists Fed Chairman Bernanke gives Congressional testimony (10 a.m.), EIA Petroleum Inventories (10:30 a.m.).

The Investrend Events Calendar showcases IRIS at American Association for Clinical Chemistry Annual Meeting 2009; MCK Shareholders Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 24 advancers versus 25 decliners and one unchanged. Advancers were led by Human Genome Sciences, Inc. (NASDAQ: HGSI) up 10.63%, Sequenom, Inc. (NASDAQ: SQNM) up 8.67%, Caterpillar Inc (NYSE: CAT) up 7.67%. Decliners followed Cit Group Inc (Del) (NYSE: CIT) down 21.60%, Regions Financial Cp (NYSE: RF) down 15.35%, Zions Bancorporation (NASDAQ: ZION) down 12.60%.

Investrend Website of the Day: http://www.surfline.com/surf-report/black-point-diamond-head-hawaii_4760/http://www.surfline.com/surf-report/black-point-diamond-head-hawaii_4760/

Quote of the Day: “Sir, you have tasted two whole worms; you have hissed all my mystery lectures and been caught fighting a liar in the quad, you will leave Oxford by the next town drain.” Rev. William A. Spooner

Today is: Ratcatcher’s Day, Pi Approximation Day.

Happy Birthday: Alessandro de’ Medici, Georg Wilhelm Richmann, William Archibald Spooner, Edward Hopper, Rose Fitzgerald Kennedy, Amy Vanderbilt, Bob Dole, Orson Bean, Oscar De la Renta, Alex Trebek, George Clinton, Bobby Sherman, Sparky Lyle, Danny Glover, Albert Brooks, Don Henley, Sylvia Chang, Willem Dafoe, John Leguizamo, David Spade, Rufus Wainwright.

Today in History: A second group of English settlers arrived in 1587 on Roanoke Island off of North Carolina to re-establish the deserted colony. Alexander Mackenzie reached the Pacific Ocean in 1793 becoming the first Euro-American to complete a transcontinental crossing north of Mexico. Wiley Post became the first person to fly solo around the world traveling 15,596 miles in 7 days, 18 hours and 45 minutes in 1933. Outside Chicago’s Biograph Theatre, “Public Enemy No. 1″ John Dillinger was mortally wounded by FBI agents in 1934. The United States government began compulsory civilian gasoline rationing in 1942 due to the wartime demands. Near Medellín, Colombian, in 1992, drug lord Pablo Escobar escaped from his luxury prison fearing extradition to the United States.

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