WOW what a rally.....
Still seems a bear rally...very convenient before Thanksgiving...definitely for the govt better than falling before Thanksgiving. The US markets are given a lot of air time in USA so psychologically a big rally ahead of one of the MOST important shopping days in the calendar will definitely give some boost of confidence...how much? Probably not significant...WHO will be borrowing more money??
The best idea so far is from McHugh (www.technicalindicatorindex.com) rebate all taxes paid in last 10 years. This would give the "man on the street" MONEY in his pocket. Raise consumption taxes (VAT, IVA, sales tax etc), and let people DECIDE what to do with their money. Giving BILLIONS to banks will not solve anything...apart form keeping them in the manner they are accustomed to! By giving money to the BASE of the PYRAMID..it will pave a way for a more sustained recovery. NO MORE BAIL OUTS for badly managed companies...let them FAIL...let small to mid size companies take their place..in the future these will be the large companies of today...
The governments can then recoup some on consumption taxes (NOT income), and as the economy improves, so will tax revenues from corporations.
to the chart above
Dow testing the lower channel it broke down out of...so....if we break back in to the channel it may have been a FALSE break lower..and we may stay in channel ( probably need to get above 8930 )...upper line of channel is 10053 so we may get trading range of 8800-10100 for a while..
9600-9800 is RESISTANCE..
IF we break down from here ...WATCH OUT BELOW...
Look at the banking index chart as well..approaching resistance..if it gets through there may reach descending trendline....IF
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