10,000 Points Support In Danger...
Fundamentals
Economic data continues to deteriorate today as store sales continue to drop and existing home sales take a serious hit (see Stock Market Calendar). In fact, existing home sales took a 27.2% hit, making the lowest level in 15 years on an annual basis. Yes, you can't have a good economy with a lousy housing market. This is why the housing market has been on the top of every analysts' concerns since before this economic crisis begun. All these numbers convinced investors that the economy might be heading for a double dip recession and spurred a rush to the safety of bonds, depressing bond yields across the board strongly.
Technicals
The Dow headed for the 10,000 points level as predicted and rebounded off it to close at 10,040. With the pessimism going around and plenty of room to go before a short term technical oversold level is reached, there is little reason why the 10,000 points level can hold up. After the 10,000 points level is breached, the next immediate support level would be the July low at about 9700. Failing that, the market will reverse into an intermediate bear trend.
Chart of Dow Made Using Telechart. Want Your Own Charting Software? Download FREE Now!
0 Comments:
Post a Comment
<< Home