12/13/07
Normally, Stock market top is happened at the extreme that most investors put in excessive speculation. Three times Fed rate cut ( total 100 basic point ) has not given any boost for the market. Moreover, Dow has strong resistance at 14000 to 14100 level and has formed double top ( technically at July & Oct highs). Also, S & P index just back off the same high level 1560 to 1570( year 2000 high). So, it seems we are at the edge of last phase of the bull market started from late 2002 and entering new stage of bear market. How long it last for the bear if Dow closed below 12800?? That depends on how much the Fed need to reduce the interest rate and also if US employment condition remain in good shape.
Thursday, December 13, 2007
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