10/09/2011

Dax have now lost 32,5 % since May. Euro in free fall Friday. Stock indexes fall sharply.

The Euro broke last resistance level in its 6 month sideways trend against the dollar and closed the week at its low 1.3651. All the long trends are now down and the euro is in a bearmarket.

Dow, SP500, Swed30 and FTSE closed down for the week but no new lows. The daily trends are now down but the choppy trading will probably continue the coming week and hourly trends can easily change.

DAX closed on a new daily and weekly low at 5166 which is 32,5 percent below its top in May. All trends are down.

CAC, IBEX and MIB got new weekly close lows. All trends are down.

Oil is still holding up but closed down at 112.57 for the week. Trend sideways to down.

Week September 12 will be of great importance for all markets. The daily down trend should be in place at least for Monday and Tuesday for the U.S. indexes which are the strongest so far.

The big fundamental question just now leading the markets is the health of the European banks. Also the role of the European Central Bank and the stiff opposition against giving more money to Greece from Germany, Netherlands and Finland. My own opinion is that these big questions can not be solved quickly and that the market knows that perfectly well. The same goes for Obamas 440 billion help to get the labor force back to work. The Congress cannot pass anything. The market knows everything. But there are things that can stop the fall at least for a while for instance the enormously oversold conditions i certain markets.

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