The S&P 500 Index recorded a slim daily deficit of about 3 points, but remains comfortably north of its 10-day moving average, closed at 1144.73. Resistance along the top end of recent trading ranges didn t help the case for stocks. Even at their best levels of the day the major averages were hung up near the neutral line.
While the economy may not be headed for a double-dip recession, economic and political uncertainty ahead of midterm elections and new tax policies is making it hard for stocks to keep up their momentum. Markets hate uncertainty, and the government has created a tremendous amount of uncertainty, so that's gotten the market frozen.
In the meantime, the trading range between resistance 1150 and support 1130 is the zone separate the bulls and bears, we still waiting for the market to lead us to the right direction. However, even market breaks 1150, there is another critical resistance right above 1165-1175, so the risk reward ratio still favor the bears in the longer term.
No comments:
Post a Comment