Markets Ponder a Rougher Ride in the coming months I think. The warning signs are already there if you look at what has been happening in the markets the last few weeks.
If you have a look at the NASDAQ we have broken significant support in the upwards channel, but we have not dropped dramatically at all.
|As Fiscal Cliff Nears, Markets Ponder a Rougher Ride|
It is my opinion that the markets are really just waiting to see what happens in the up and coming election. I doubt they are going to let the market sell off hard when congress are rallying and Obama's reputation is at stake. That will not make him look good at all. Any astute investor knows that it is common for the markets to hold ground every 4 years whenever there is a presidential election occuring, so this year could be the same.
Another factor that we must consider is that there has been so much talk lately of the bad economic conditions, that any more bad news could be priced into the market.
As Fiscal Cliff Nears, Markets Ponder a Rougher Ride, because the bigger financial changes coming are going to shock many people soon. I think those who are awake know something is coming, However people are looking for more evidence to back up their sneaking suspicions.
Statistically the market tends to rise after US elections are over, and The fact that QE3 has been announced, is going to make things very interesting in the coming weeks.
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