MDM - Switch to buy signal June 21, 2011
With Geithner signaling that the budget ceiling will be raised, this potentially means more quantitative easing ahead. Geithner, while not a member of Congress, is one important voice that further devaluation will occur.
Bernanke is slated to give a press conference tomorrow at 2:15 EST and will no doubt do his best to calm the markets. Odds are that the US will have to continue to devalue rather than risk default so in the eyes of the Fed, what choice does Bernanke have.
Further, while not yet guaranteed, signs point to Greek Prime Minister George Papandreou's government surviving even with the new austerity measures. The vote goes through later today.
With the NASDAQ currently up 1.68% as of this writing, this would be the fourth day of the attempted follow through. The midbar close on 6/16/11 represented the first day of the rally attempt since the market did not move lower than the low of this day.
Unless the NASDAQ Composite closes in the lower half of today's trading range, the buy signal stands.
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