I’m getting tired of foolish republican political games, they are playing with fire and it’s not even funny. They are going to wait up to the last second before come to some sort of agreement to raise the U.S. debt ceiling. Their tiny brains can’t understand the destructive magnitude of shock waves which could cause by the U.S. debt down grade by one or a couple the rating agencies could have on the global financial market. I can’t believe a dumb and dumber are running my country! John Boehner’s speech disgusted me! I turned off the TV. I’m a political junky. I didn’t like Bush, but I can’t call a time that I turned off the TV while he was giving a speech. Republicans talk like they played no role this 14.3 trillion dollar mess!
Who did borrow money from China to go to war with Iraq and Afghanistan? Who did kept the interest rate too low for too long? Who did fail to regulate the Wall Street from gambling with housing Market?
Enough about politics! lets focus on stock market. I think the sell off is overdone and we are close to get a relief rally. We should have maximum of one or two days left from sell off and we should get a short squeeze with in next 2 trading days. Therefore I’m going to press "the buy key" soon. S&P500 should get a bounce from 1296-1290 if these levels fail to hold the major support will be 1284 or 1276. In the chart above I pointed the major uptrend channel which started in march 2009. As long as S&P500 stays in this channel bulls have the upper-hand. The last line of defense for bulls would be 1260. Let’s hope S&P500 would not violate 1260, if it dose we should witness big sell-off in coming days. If 1260 fails next support will be 1246. and if 1246 brakes there is no support until S&P500 hit 1200-1188.
S4:1246 (MAJOR SUPPORT)
S5:1200-1188 (MAJOR SUPPORT)