I've always thought that politics...geopolitics, i mean, does play a key role in shaping the direction of the markets. As I've noted in the past, once the critical benchmarks in the US equities come tumbling down, the sluicegates of liquidity maybe opened anew to forestall any incidence of a Central Banker's dreaded nightmare...'deflation'. This could be a possible legacy from Greenspan to Bernanke, otherwise known as the "Bernanke Put". Political expediencies may once again govern money policies.
I had been looking at 10,400 level, about 10% from the recent highs, as a possible threshold level, but maybe have found a clue from Stockcharts.com's Chip Anderson. According to Mr. Anderson...
"Three big down days have sent the Dow back down to the 10,700 support level. What's that you say? 10,700 is just a number? Just a number like any other? Oh really? Check out this chart:
I had been looking at 10,400 level, about 10% from the recent highs, as a possible threshold level, but maybe have found a clue from Stockcharts.com's Chip Anderson. According to Mr. Anderson...
"Three big down days have sent the Dow back down to the 10,700 support level. What's that you say? 10,700 is just a number? Just a number like any other? Oh really? Check out this chart:
"10,700 is a number that should make your ears perk up. If the current Mid-East problems push the Dow well below 10,700, it will mark a significant change in the market's technical picture."
Would a break of 10,700 level then be quintessential marking "the line in the sand"???
Would a break of 10,700 level then be quintessential marking "the line in the sand"???
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