11/10/2012

DOW, SP500, DAX and FTSE are holding in strong support areas now.

Today Thursday is the last day for a strong rally to keep the possibility for a new high open. Friday the 21 day MA will turn down and stop that possibility. This weeks drops has reached very strong support areas and the main indexes must now rally to avoid a weekly close below the 8 MA. DOW, SP500 and DAX still looks steady in the big perspective but must not make new daily closing lows.
These indexes could easily change trend to down before the weekend otherwise.

SWED, CAC, IBEX and NAS look vulnerable for further falls.

The global stock markets are in a very difficult situation right now and a bad out come these two last trading days can open the way for substantial losses the coming weeks.

The fundamental situation looks bad and so far the first reports for the third quarter regarding how the companies see the future is disappointing. The US election polls now have Romney in a small lead. All good news regarding the European crisis seems to be in and the picture forward is far from strong.
Gold and the EURO are unstable as well. Low turnover and mainly computer trading keep the investors out of the markets and 33 percent of the money is said to be in bonds.
The robots will decide were the main trends will go now.




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