SP500 closes below 800!

[Italkcash Newsfeed]

What does that mean? Well 800 has been the psychological support level so far. But with the SP500 breaking through this level the next support level could be as low as 600. The reason could be the de-leveraging investors has to accept. What will this de-leveraging mean. Well, when investors has to cash in assets to pay debt the forex markets will be volatile. Like we saw it in October where the dollar went up against the Euro as lots of European investors had to cash in assets to pay out investment loans in USD. As the stock market renounced in January the dollar weakened. But now we have the same situation falling stock market and rising dollar. The strengthen dollar is not a sign of a strong US economy but just a reaction of the free currency market.

Be careful in the market – The bear is out.

The Doc