It’s interesting how after some $2 trillion has been spent on trying to turn this economy around, the bulls still look to Uncle Sam to spend enough money to fix it. Eventually Congress will agree on a deal, it has to – it’s in its blood to bail these companies out. It gives those bureau-rats more power, and more say-so in Corporate America – and the funny thing is, it’s done all with you money and mine.
When the bailout is approved, and it will, the markets will rally and will provide a boost, probably taking out the 50-day moving average. If it doesn’t pass I will be utterly shocked – its not everyday that Congress acts responsibly.
The 50-day moving average continues to be a stumbling block for the bulls, but the rally that we have seen over the last few weeks is still intact, but another huge sell-off could destroy or nullify the gains and strength of this rally. Assuming this trend holds, this is a good entry point for the index ETF’s, as they are bouncing off of the mini-trend lines in place.
Here’s the Nasdaq and S&P charts…