Wednesday 27 February 2013

Not out of the woods yet



With a 100 point rise yesterday, the DOW crept back above the support level it had broken on Monday. But a glance at the chart shows the move was far from convincing. Volume was low and there was a pull back from the high at the end of the day. So the period of uncertainty continues. I am still holding tight and hoping for the best.


The S&P500 shows a more pessimistic pattern. It shows a distinct downturn in the market. So far, however,  it has respected a support line that was established back in November. A break of that support line would add weight to the bearish side of the scales.


In Continental Europe stock markets appear to have been thrown into turmoil by the Italian election and various jolts that result from news about the Euro Zone and its difficulties. The movement of the German Dax shows what I mean.


The UK seems to be following the DOW. Although it is weak it hasn't shown the same degree of volatility. There is however lots to worry about.


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