CARNAGE CONTINUES

Not only after the FED’s last night decision US stocks went down again. The last meeting with Bernanke reduced further the pace of monthly asset purchases to $65 billion from $75 billion. The reaction was not severe, but after Monday and Tuesday recovering the markets started to go south again.

• SP500 -1.02% closed at 1,774
• DJIA -1.19% fell to 15,738

The glory days are over? It is still early to say any positive or negative. What we only see that all sectors are diving. This could be the canary in the coal mine. It is not a good signal and technically seems to the US markets will go down further. Where and when stops the correction? Where hit the knife the ground? To confirm that we need to see some platform built in the following couple of days. This week two days recovery was weak and wasn’t sufficient.

In technical perspective the DJIA took out the 16.150 key support level and now at around 15.800, if the support of 15.750 is taken could come some serious short fall scenario. Let’s see the upcoming days.

The BFM Assets Team.