Thursday, September 8, 2011

Market Reaction to Stimulus

The market used today's government announcements to go into a mild correction, one which I suspect is a W4 and which should be ending perhaps as soon as tomorrow Friday before going into rally mode again. The markets should find the positives in Obama's stimulus plan and Bernanke commitment to help the economy, technically it should be enough to get the market to at least 1210. What remains to be see is whether the market has enough fuel to challenge 1230 and then the 50 day MA. However, I should point out the bullish signal by the TA is non-confirmed as it closed under it so the market has to get back over it or else is going way down.

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