Best of the Week
Most Popular
1.London House Prices Bubble, Debt Slavery, Crimea 2.0 - Russia Ukraine Annexation - Nadeem_Walayat
2. Gold And Silver – 2014 Coud Be A Yawner; Be Prepared For A Surprise - Michael_Noonan
3.Sheffield, Rotherham Roma Benefits Plague, Ch5 Documentary Gypsies on Benefits & Proud - Nadeem_Walayat
4.Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - Jim_Willie_CB
5.Don't Miss the Boat on Big Biotech Catalysts: Keith Markey - Keith Markey
6.Gold Prices 2014: Do What Goldman Does, Not What It Says - David Zeiler
7.Bitcoin Price Strong Appreciation to Be Followed by Declines? - Mike_McAra
8.Gold Preparing to Launch as U.S. Dollar Drops to Key Support - Jason_Hamlin
9.Doctor Doom on the Fiat Money Empire Coming Financial Crisis - Andrew_McKillop
10.The Real Purpose Of QE - It’s Not Employment - Darryl_R_Schoon
Last 72 Hrs
America has Become a Police State - 19th Apr 14
Elite Herd Psychology And War By Default - 19th Apr 14
E.U. Officially Adopts the Bank Depositors Bail-In - 19th Apr 14
Goldman Sachs Is Highly Motivated To Low-Ball Gold Price - 19th Apr 14
Save MtGox - Bitcoin Important Implications of Going Down - 19th Apr 14
Stock Market SPX Topping Valuations - 19th Apr 14
Tesco Profits Panic! Back to Back £5 Off £40 Shop Voucher Promotions - 18th Apr 14
The Obama Game - Is Putin Being Lured Into a Trap? - 18th Apr 14
The Growing Threat to Capitalism - 18th Apr 14
Build Biotech Wealth on Solid Platforms - 18th Apr 14
Has Solar Power Finally Arrived? - 18th Apr 14
Bank Depositor Bail-Ins and Real Assets vs Liability-Based Assets - 18th Apr 14
10 Ways to Screw up Your Retirement - 17th Apr 14
One of Harry Dent’s Three Keys to Market Prediction is Cycles - 17th Apr 14
Obamacare Proof Stocks - 17th Apr 14
Gold, Silver And The Mining Sector: Prepare For A Severe Fall - 17th Apr 14
Hidden Australian Life Sciences Bio-tech Growth Stocks - 17th Apr 14
Disrupting Big Data Status Quo - 17th Apr 14
What the Stock Market Bears Have Been Waiting for... - 17th Apr 14
Copper Is Pathological and Suffers from SAD, but It Has Value - 17th Apr 14
Old World Order New World Order, Chaos And Change - 17th Apr 14
Even The US Government Will Abandon the U.S. Dollar - 17th Apr 14
Gold - Coming Super Bubble - 17th Apr 14
Glaring Q.E. Failure Spotted - Money Velocity Is Falling Rapidly - 16th Apr 14
High-Frequency Insider Trading - 16th Apr 14
Gold Prices 2014: Do What Goldman Does, Not What It Says - 16th Apr 14
These CEOs Will Make Investors Rich - 16th Apr 14
Climate Change, Central Banking And The Faustian Bargain - 16th Apr 14
Every Central Bank for Itself - 16th Apr 14
Social Security, U.S. Treasury Stealing Every Last Penny From Americans - 16th Apr 14
Ukraine Falling to Economic Warfare and Its Own Missteps - 16th Apr 14
Silver and Gold Miners Still Disappoint - 16th Apr 14
Silver, Gold, and What Could Go Wrong - 15th Apr 14
How I Intend to Survive the Meltdown of America - 15th Apr 14
France Wakes Up To The Multicultural Multi-Threat - 15th Apr 14
The Real Purpose Of QE - It’s Not Employment - 15th Apr 14
Peak Coal - 15th Apr 14
Flash Crash, Rigged Markets - What’s the Frequency Zenith? - 15th Apr 14
Forecasting U.S. GDP Growth: A Look at WSJ Economists’ Collective Crystal Ball - 15th Apr 14
Stock Market - Is Something Nasty About to Happen? - 15th Apr 14
How to Trade Your Way To Freedom - 15th Apr 14
Understanding (and Ignoring) the Media Bandwagon Against Gold - 15th Apr 14
When Stock Market Bubble Crashes, Take Refuge in Gold Stocks - 15th Apr 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stock Market Fiscal Cliff Happy Ending???.......

Stock-Markets / Stock Markets 2012 Dec 18, 2012 - 05:52 AM GMT

By: Jack_Steiman

Stock-Markets

That's what Wall Street is hoping for today or sometime very soon. A happy ending to what we all don't want to see happen regarding the fiscal cliff as the ramifications will be far reaching. Unemployment will increase as will outsourcing along with higher taxes. Fewer and fewer will feel any job security, thus, putting the economy into recession. If there's no resolution to the fiscal cliff, it's basically etched in stone we'll see at least a few quarters of recession, if not longer, potentially much longer. Washington knows what's at stake here. They may be incredibly stubborn, but they're not stupid, at least I don't think they are. We'll find out if they are as playing chicken as it won't be a very wise action on either sides part.



We saw what can happen today with the market on even the slightest sliver of hope between the two sides. There was news that some real progress was being made, which resulted in futures moving higher. That held throughout the morning, with the market building on its gains throughout the day, even though there was the usual midday pullback. It was bought up the way it should in a more positive developing environment. We closed with a rush higher as hope escalated into the close. That's really good to see. Nothing bearish for now. The charts are all positive in nature.

The overseas markets have been leading higher for some weeks to months now. We have been lagging pretty badly. Germany, and many other Euro countries, have seen their stock markets break out, but we just haven't been able to get moving such as they have. I would have thought that our fiscal cliff worries are the worries of all Euro countries, but that hasn't been the case. Some better news out of China has helped their market rock up as well. The United States usually leads both up and down, thus, it seems there's plenty of upside potential should our fiscal cliff headache be put properly to rest. We could run quite a ways if things break just right on that front, but without a resolution we will undoubtedly continue to lag way behind. In reality, our bad news would probably end up being bad news for everyone else.

We're acting better technically and that's not an accident. I have often said the market smells out a result long before it's actually taken place. It's acting as if the fiscal cliff problem has already been resolved. You can never guarantee anything, but the overseas action, and today's late action, may be speaking volumes about a resolution coming sooner than later. We can only hope. It would be a huge win for our economy and for all people. Hopefully, the message from the overseas markets, and now finally ours a bit more, has things working out in the end after all. A happy ending? Very possible.

Apple Inc. (AAPL) is a key stock as we all know. It fell two hundred points for all intents and purposes as it went from 703 down to 505. It had a very nice rally back up, only to see it fall hard back down and test 505 once again today. It actually printed in the 496's pre-market. It gapped lower and then finished very powerfully, a strong bottoming-type candle that, hopefully, has the retest in as the lows today. There has been a strong positive divergence on the daily chart of AAPL, but it's useless until you see the bottoming stick. AAPL has massive resistance everywhere, but this type of day can at least put in a temporary, if not a bit longer-term, bottom.

There are no guarantees at any time in this game, but if technical analysis has any say in things, today should have seen that double-bottom test do the trick for the bulls. Hard to fight what you see. There's reason for hope as this leader has taken it on the chin for quite some time now. Things are hopefully looking up for it, and thus, the market. With all the daily index charts back testing, and holding those key exponential moving averages, things are looking up somewhat for the market for the short-term. The S&P 500 has key support at 1412, or the 50-day exponential moving average. As long as that holds, the market is fine.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Sign up for a Free 15-Day Trial to SwingTradeOnline.com!

© 2012 SwingTradeOnline.com

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014