Market Overview

Will We Hold It Wednesday – Fiscal Cliff Fever Edition

Time to worry about the cliff again!

We took a few days off from worrying but comments from Senators Harry Reid and Mitch McConnell yesterday both indicated that little progress was being made on the ongoing negotiations and that was all it took to panic people out of positions yesterday afternoon, as we gave back most of Friday's ill-gotten (low volume) gains.

In context, we're still making good, bullish progress but yesterday's action pretty much takes a "V"-shaped recovery off the table and now we'll have to fight and claw tooth and nail just to get back to our strong bounce lines by the week's end.  Anything less than that will not be a bullish signal into the weekend.  Our levels remain:

 

  • Dow 12,720 weak, 12,950 strong. 
  • S&P 1,375 weak, 1,400 strong.  
  • Nasdaq 2,900 weak, 3,000 strong. 
  • NYSE 8,000 weak, 8,100 strong.
  • Russell 790 weak, 805 strong. 

No serious damage yet but those paying attention to what's going on in China are becoming very concerned about the Shanghai Composite, which just spent it's 2nd day below the the very-critical 2,000 line – and that's down 16.66% since June.   

 

 

 

 

IN PROGRESS

 

 

 


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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Economics Markets Trading Ideas

 

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