US Markets – Hovering Near Key Resistance

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2012Sep SP 500

2012Sep Dow Jones Industrial

Looking at the 2 key US indices, they have remained largely unchanged since 2 weeks ago when I last looked at them. Interestingly, the S&P 500 has broke slightly above its previous swing high, but the Dow Jones is still unable to break up. Overall, I am still bearish, and I am looking for a setup to go short. Aggressive players would have already started accumulating shorts, since the R/R is very favourable.

Markets are likely to remain flat till the next major news catalyst, which is likely to be the next FOMC meeting later this month. (http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm). Since the US elections are going to be held in November this year, it is likely that the govt will find ways to prop up the market till then, either through promises of QE3, or by playing up positive economic data.



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