Stocks Set to Bungee from Fiscal Cliff
Reviewing the technical damage to the major equity averages since QE3 and the election:
Analysis of the Dow Industrial Average (12,588): Is up just 3.0% year-to-date, is down 8.5% since its QE3 reaction high, is down 5.2% since the election and rebounded 0.9% on Friday after the fiscal cliff meeting with the president. My annual value level is 12,312 with weekly and monthly pivots at 12,623 and 13,143.
Analysis of the S&P 500 (1359.9): Is still up 8.1% year-to-date, is down 8.4% since its QE3 reaction high, is down 5.0% since the election and rebounded 1.2% on Friday after the fiscal cliff meeting. If SPX moves above weekly and annual pivots at 1359.6 and 1363.2 the upside is to my monthly pivot at 1418.7.Analysis of the Nasdaq (2853): Is still up 9.5% year-to-date, is down 12.0% since its QE3 reaction high, is down 5.6% since the election and rebounded 1.5% on Friday after the fiscal cliff meeting. My weekly value level is 2794 with this month's risky level at 3028. Analysis of the Dow Transportation Average (4891): Down 2.6% year-to-date, is down 6.9% since its QE3 reaction high, is down 6.4% since the election and rebounded 1.1% on Friday after the fiscal cliff meeting.
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