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Third consecutive negative session of the U.S. state markets |
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Thursday, 13 November 2008 |
The U.S. stock market remained under pressure on Wednesday after investors saw further signals to the deterioration of the economy. The news that the government will not buy mortgages problem, as planned, sent the main indexes of red territory by more than 5 percent.
Finance Minister Henry Paulson announced that ultimately they 700-billion dollars that were earmarked for the purchase of these mortgages will actually be used for direct purchase of shares of the difficulties companies, as this would save some time, rather than to buy risky mortgages.
Concerns about the main manufacturers of automobiles, which analysts have serious risk of bankruptcy, also heavy on the market.
News about the biggest chain retailer also continues to worsen. Macy's reported 44 million loss for the third quarter after a decline in sales of more than 7 percent. Shares of the company decreased by 6.3 percent to 8.82 dollars for cash.
Best Buy lowered its estimates for 2009, with sales expected to continue to decrease. Shares of the company become cheaper by 7.1 percent to 22.17 dollars for the shares. American Express Co. announced that it needs 3.5 billion dollars to fill the shortage in my balance. Shares of the company become cheaper by 8.9 percent to 20.40 dollars for cash.
Technical analysis
S&P 500 - USA
Short-term picture continues to deteriorate after S & P 500 fall below 900 points, which increased the index back down to the bottom at 840. In the coming days will likely become witnesses to test the limit of 800 points in overcoming which will open the opportunity to test the bottom of October 2002 at 770. Upon resumption of the ascending movement has psychological resistance level of 1000, followed by the key 1050 and 1080, which is 61.8% correction of rising 768-1576. Although there is a recovery of the ascending movement lately, it is still early to say that the index has reached bottom in mid-840 and while under the key level in 1080. Negative risk is maintained and is very likely to become witnesses of a new reduction.
DAX 30 - Germany
Short-term picture darkness after the index now testing the level in 4770, which is a 23.6 percent decline adjustment 7229-4012. In holding the index will be based on targets in 4500 and 4300. Upon resumption of the ascending movement towards a break-up of 5240 will the index to 5620 levels, which is 50% Fibo adjustment. Although oscillator showed a divergence that is possible signal to reach the mid-term bottom, is still too early to say that positive trend returns, while the index remains below 6000 and we may become witnesses of new descendants movements. |
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