02/01/2013
United States avoids calamity in "fiscal cliff" drama
(Reuters) - The United States averted economic calamity on Tuesday when lawmakers approved a deal to prevent huge tax hikes and spending cuts that would have pushed the world's largest economy off a "fiscal cliff" and into recession.
01/01/2013
How will the stock markets perform now?
You have seen the Dow charts in the second blog below. The markets will open CFD trading Wednesday at CET 12:00 with the DOW, SP500 and NAS.
The US close at 22:00 Monday was built up the way you see at the 2 hour chart below. The 8 MA turned up at 13:00 and the market started its up trend until close just below the days top. CNBC showed every move from reporters at the Congress and White house while the party leaders discussed the Cliff. The President held an upbeat speech one hour before close and signals from the discussions became more and more positive for a deal. After close the vice President said he felt very very good having spoken to the leaders and 8 hours later the Senate passed the bill.
The NY Times article tells me the market will be upbeat at opening in 8 hours unless the House has voted down the bill.
Even though most of the rally was short covering the 2 hr trend is strongly up. The charts will tell us before the news what is happening in the House of Representatives.
The monthly and weekly and 2 hr trends are up and in the daily chart there has not been a cross from the falling 8 MA and the rising 21 MA.
The SP500 trend is stronger and a key reversal on upside is in the daily chart plus the fact that the close came in above the 8 and 21 MA's. NAS is in between the DOW and SP500 when it comes to strength.
It is important to follow today's news until the markets open for news about the bill in the House. Then I think the markets will show what is happening before the media.
The US close at 22:00 Monday was built up the way you see at the 2 hour chart below. The 8 MA turned up at 13:00 and the market started its up trend until close just below the days top. CNBC showed every move from reporters at the Congress and White house while the party leaders discussed the Cliff. The President held an upbeat speech one hour before close and signals from the discussions became more and more positive for a deal. After close the vice President said he felt very very good having spoken to the leaders and 8 hours later the Senate passed the bill.
The NY Times article tells me the market will be upbeat at opening in 8 hours unless the House has voted down the bill.
Even though most of the rally was short covering the 2 hr trend is strongly up. The charts will tell us before the news what is happening in the House of Representatives.
The monthly and weekly and 2 hr trends are up and in the daily chart there has not been a cross from the falling 8 MA and the rising 21 MA.
The SP500 trend is stronger and a key reversal on upside is in the daily chart plus the fact that the close came in above the 8 and 21 MA's. NAS is in between the DOW and SP500 when it comes to strength.
It is important to follow today's news until the markets open for news about the bill in the House. Then I think the markets will show what is happening before the media.
The Senate passed its bill on the fiscal Cliff CET 08:00 this morning. The bill is now at the House where it will be discussed and eventually pass or not today Tuesday or later.
Here is a two page article from NY Times telling you all you need two know right now about the Cliff bill.
DOW closed up 175 points at 13.108.7 the last day of 2012 on positive news about the fiscal Cliff from Obama and reports from the senate negotiations.
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