Best of the Week
Most Popular
1.Putin’s World: Why Russia’s Showdown with the West Will Worsen - John_Mauldin
2. Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - Nadeem_Walayat
3. Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - Austin_Galt
4.Gold Price Golden Bottom? - Toby_Connor
5.Gold Price and Miners Soar on Huge Volume - P_Radomski_CFA
6.Stock Market and the Jaws of Life or Death? - Rambus_Chartology
7.Gold Price 2015 - EWI
8.Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - Nadeem_Walayat
9.Gold, Silver, Crude and S&P Ending Wedge Patterns - DeviantInvestor
10.Is the Gold And Silver Golden Rule Broken? - Michael_Noonan
Last 5 days
The Price Of Oil Exposes The True State Of The Economy - 27th Nov 14
Brazilian Bovespa Stock Market Technical Analysis - 27th Nov 14
Gold Price Would Soar on Possible Swiss Yes Vote - 27th Nov 14
Crude Oil Asset Bubble Trouble - 27th Nov 14
Thanksgiving and Puritan Geopolitics in the Americas - 27th Nov 14
The Dow Jones Stocks Index - Beautiful Tree in the Desert - 27th Nov 14
The Digital World, The Opiate of The People - 27th Nov 14
Harry Dent's Simple Strategy for Surviving Withdrawals from Markets on Crack - 27th Nov 14
Socialist France Just Cannot Compete Against Google Freedom - 27th Nov 14
A Short Tale About the Grand Manipulation of Crude Oil Prices - 26th Nov 14
China Secret Gold Buying ... How Could It Happen? - 26th Nov 14
Gold Price Spikes to $1,467.50/oz on Computer Glitch? - 26th Nov 14
Gold - So Bad It's Good: Surviving 2014 - 26th Nov 14
TrueShopping.co.uk Real Customer Experience Review - Online Shopping Lessons - 26th Nov 14
Is There A New Global Consensus About Cheating Investors To Reboot Employment? - 26th Nov 14
EUR/USD – Currency Bulls Don’t Give Up - 26th Nov 14
Swiss Gold Referendum A Golden Opportunity for Switzerland - 25th Nov 14
Silver: What COT Analysis Tells Us - 25th Nov 14
Stock Market Big, Bold and Ugly - 25th Nov 14
U.S. Dollar Near Top? Gold and Silver Trading, Platinum Breakout Invalidation - 25th Nov 14
Buy Fear - Easily Pick Up Profits on Stock Market Dips - 25th Nov 14
The Islamic State Reshapes the Middle East - 25th Nov 14
Gold Price Forecast 2015 - 25th Nov 14
The Swiss Referendum On Gold: What’s Missing From The Debate - 25th Nov 14
Clash of Generations - Why Millennials Still Live at Home; Not Jobs, Student Debt, or Housing - 25th Nov 14
Stock Market Reminiscent of Pompeii - 25th Nov 14
Once Upon A Time There Were Philosopher Kings - 24th Nov 14
The 2014 Crude Oil Price Crash Explained - 24th Nov 14
China Stock Investing - Follow the Money! - 24th Nov 14
122 Tonnes of Gold Secretly Repatriated to Netherlands - 24th Nov 14
What Causes the U.S. Dollar to Move? - 24th Nov 14
Stock Market Indexes New Highs - Will Uptrend Extend Even Further? - 24th Nov 14
All Hail the King U.S. Dollar - Trend Forecast - 24th Nov 14
Where Is China Economy On The Map Exactly? - 24th Nov 14
Most of The World Economies Panic - Is The US Next? - 24th Nov 14
Stock Market Exhaustion Gap? - 24th Nov 14
Gold Golden Gains Come After The Pain - 24th Nov 14
Crude Oil and Stock Market Setting The Stage For The Next Recession - 23rd Nov 14
This Publicly-Owned Bank Is Outperforming Wall Street - 23rd Nov 14
Who’s Ready For $30 Crude Oil Price? - 23rd Nov 14
Strategic, Methodological and Developmental Importance of Knowledge Consumption - 23rd Nov 14
Manipulated Stock Market Short Squeezes to Another All Time High - The China Syndrome - 23rd Nov 14
Gold Price 2015 - 22nd Nov 14
Stock Market Medium Term Top? - 22nd Nov 14
Is the Gold And Silver Golden Rule Broken? - 22nd Nov 14
Malaysia's Subsidy and Budget Deficit Conundrum - 22nd Nov 14
Investors Hated Gold at Precisely the Wrong Time: What About Now? - 22nd Nov 14
Gold and GLD ETF Selloff - 22nd Nov 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Gold Report 2015

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