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martes, 15 de octubre de 2013

Two days for the debt-ceiling deadline

DJ Resistance :  15.709.58 Historical high
                           15.555      Minor
                           15.433     Important
                           15.308      Strong
                           15.172      50-Day MA(moving average)

DJ Support     :  15.050
                         14.945      Minor
                         14.719      Strong, October low
                         14.550      Minor
                         14.400     Very strong

Technical Analysis :
Actually I am impressed how the two supports worked very well.This is neither  coincidence nor  fortune teller,it is technical analysis:
- DJ14.760 August low
- DJ14.770 200-Day Moving Average

In technical analysis the 200-Day moving average determines the long term trend. The DJ retested that support succesfully so the uptrend continues.
The DJ rebound from those levels is positive and therefore we can consider the three positive days (October 10,11 and 14) , higher highs erase August low violation at DJ14.719 on Wednesday October 9th.
The positive trend and the positive channel from March 2009 in the daily chart have not been broken.
We conclude the DJ index is still in a positive trend.

Fundamentals :
Not to much to say. The goverment shutdown and specially the debt-ceiling deadline on October 17th. are going to drive the market. The first important payment is for October 31st. and the second one is for November 1st. The Treasury is expecting to collect circa 100 billion from October 17th. until October 31st.which means that the default, if any, could be done after November second week.
Dear traders and investors this is it for the next two days, stay cool and cold, you are professionals. The moment of truth is very close.
Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!
Ulises

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