US Economy Steps Out of Recession
The Dow gained almost 200 points today as the US economy steps officially steps out of recession.
The US economy steps out of recession at last with the Q3 GDP coming in positive 3.5%. This is the first time Real GDP has treaded positive territory since this recession started and a positive Real GDP number officially ends the recession on the data basis. Yes, unemployment rate has yet to turn around, that's why most people don't feel it yet but it takes time for businesses to pick up again and then when demand continues to grow will businesses start hiring again. And the numbers tell us that businesses ARE picking up now, so its just a matter of time.
The Dow's rebound today off its 50MA is extremely critical and coincidental to the GDP number. This rebound from a short term oversold condition occurred with good trading volume which makes this an extremely positive rebound. In fact, this could give the Dow the energy it needs to break the 10,000 points cleanly this time round.
For now, the Dow turns short term neutral trend within an intermediate and primary bull trend.
The US economy steps out of recession at last with the Q3 GDP coming in positive 3.5%. This is the first time Real GDP has treaded positive territory since this recession started and a positive Real GDP number officially ends the recession on the data basis. Yes, unemployment rate has yet to turn around, that's why most people don't feel it yet but it takes time for businesses to pick up again and then when demand continues to grow will businesses start hiring again. And the numbers tell us that businesses ARE picking up now, so its just a matter of time.
The Dow's rebound today off its 50MA is extremely critical and coincidental to the GDP number. This rebound from a short term oversold condition occurred with good trading volume which makes this an extremely positive rebound. In fact, this could give the Dow the energy it needs to break the 10,000 points cleanly this time round.
For now, the Dow turns short term neutral trend within an intermediate and primary bull trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
posted by Jason Ng at 6:58 PM
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