Wednesday, October 9, 2013

Oct 09 - The DOW (weekly) - amid the shutdown & debt ceiling chaos

Hi All.

Re-post here...
Took a look at the Dow, which has suffered serious fall since late-Sept...
This fall has been accelerating under the current on-going government shutdown uncertainties, & debt ceiling negotiation gridlock in Capitol Hill.

It's definitely not looking good now on Dow.
If it fails to get back above the 14,900-15,000 support-turn-resistance band soon, we will likely see further plunge to 14,550-14,750, or even lower to challenge the 14,000 psychological mark.

If Dow fails, most likely regional major indices will follow suit.
Especially, our beloved KLCI index/FKLI futures, which has been on an obvious 'supporting-mechanism' in recent action.

Of course, tonight's nomination of Fed's next chairman, current Fed vice-chair lady, Janet Yellen, after Bernanke leave office in January2014, might help support the market a little tonight, as Yellen had been playing a key support role in running the most accommodatve monetary policy on Fed/US's history.
The nomination announcement by Obama will be on tonight at 2am (or 3am??, US eastern time).

Dow opened to modest gain, but the gains are fading as of writing.
Yellen will be a short-live boost, the underlying theme will still be the shutdown & debt gridlock in Washington.

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