Predicted S&P correction started this week from 2079 and closed the week at 2002 and at 1999.5 after hours. This is to make room for Santa Claus rally to 2075-2100 range. Present first resistance is 2009.31 and maximum fall is limited to 1973-1971 support. Fall is attributed to Crude oil drop to $57.49, Greece worries, China slowdown and US Govt shut down fears. One of the factors Govt shutdown has been removed late Saturday night when Senate passed $1.1 trillion spending bill. Crude oil on the other hand will drop to $55 in the week ahead. Fed meets on Wednesday and will give indication of timing of first rate rise. Previous guidance suggested 2nd half of the year. But bumper NFP and sales rising data strengthen the 3 hawk members to suggest rate rise in March 2015. This move will further strengthen the dollar and weaken the markets.
Posted on: Sun, 14 Dec 2014 07:10:45 +0000
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