Posted on 09/01/2015 9:39:23 PM PDT by Perseverando
NEW YORK – On Tuesday, the Dow Jones Industrial Average resumed posting losses in the hundreds of points, dropping briefly in late afternoon trading under the threshold 16,000 level.
The Dow closed at 16,058.35, having rebounded from market lows, but still 469.68 points down.
Canada announced Tuesday the Canadian economy shrank at an annual rate of 0.5 percent in the second quarter, following a 0.8 percent decline in the first three months of the year, qualifying as a recession.
Meanwhile, China’s official manufacturing purchasing-managers index fell to 49.7 in August from 50 in July, marking its lowest level since August 2012 and triggering fears China’s miracle growth years have come to an end.
Monday, WND reported a Chinese “stock market bubble” caused by high-yielding alternatives offered by investment firms has created a “shadow banking” environment that encouraged average Chinese workers to gamble with their savings. Investors moved millions out of regular low-yielding bank deposits into investment accounts that leveraged their savings to buy speculative stocks purchased at high margins.
Viral Acharya, an economist at the Stern School of Business at New York University, estimates shadow banking in dollar terms amounts to more than $2 trillion. He believes, consequently, the Chinese stock market will fall another 35 percent before the leverage added by “shadow banking” gambling with high-yield speculative Chinese stocks comes to an end.
The potential for a bear-market cycle is causing household American 401(k) investors to fear their retirement savings nest eggs are about to be eroded away by a global economy declining again into a deep recession.
More to come?
(Excerpt) Read more at wnd.com ...
It’s a good thing Obonzo’s ‘conomy B boomin’!
Dow must retest the recent low for support, if it goes below that it will seek the next lower support level. It’s what the market does.
And then when the next support level is breached?
Quick! The President needs some new signing orders to choke-off and regulate what’s left of the economy! That always helps. /s
Whatever it takes to stop global warming, except for him and Moochelle staying in D.C. and not wasting millions of pounds of jet fuel flying around on Air Force 1.
That darn Bush, his fault for sure.
i did some fake trades selling puts and calls. i’ll have to check. but look at the oex tables
http://www.marketwatch.com/investing/index/oex/options. have to do a size analysis on the size of the table.
should have bought he calls yesterday. 860
That darn Bush, his fault for sure.
actually his allegiance to goldman sachs did not help.
GS told W to take out lehman. GS held the same stuff that lehmen held and GS used the confusion to unloaded their stuff inside tarp.
“And then when the next support level is breached?”
Whenever a support level is breached it usually means it will go down further to the next support level.
Support and resistance levels are determined by where it was trading before in the past. Once a support level is breached then it becomes a resistance level.
There are also moving averages that are resistance and support levels.
“And then when the next support level is breached?”
It’s current support level is from March - April of 2014 which is around 16,000, resistance above is around 16,350.
If it breaks support at 16,000’ ish next support level is around 15,750; strong support there. Next level of support is around 15,200....
Keep in mind as it goes thru a support level that support level then becomes resistance on the way back up.
and it does appear to be headed south by several indicators, one being money flow. Which indicates if money is going in or going out of the market.
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