US Stock market took a day break yesterday and formed a doji like candle. As I have mentioned that overall market sentiment looked bearish yesterday, I have been catching up the latest news on Yahoo finance.
The oil price continued to stay high, manufacturing index and constructive activities decline , all this bad fundamental news is going to drag the stock market further down.
One important thing to take note now is that the S&P future broke the 1270 key support level. Let’s see where it is heading when the market open later. If it continue to head south, then really big good bye to the bull brother then.
DISCLAIMER: This information is used for learning purposes only. It does not constitute an offer or solicitation to buy or sell. You should do your own analysis on top of my postings.
I totally agree with you regarding the technical support levels and the lack of fundamentals in the U.S. economy. With the housing bust, credit crisis, and high oil prices, there is no way that our economy will rebound anytime soon. I believe we could easily see 1000 on the S&P, and DOW 10,000.
It would scary if we are seeing 1000 on S&P and 10,000 on Dow. However, it is not impossible, we must always monitor the market with a cautious mind.