S&P Momentum Petered Out

SPCFD:SPX   S&P 500 Index
Chart suggest S&P momentum is running out. I'm not so sure after a kick the can plan on the fiscal cliff will result in a post 2008-09 market crash peak.

Momentum measures the rate of change in closing prices and is used to detect trend weakness and likely reversal points. It is often underrated because of its simplicity.

Short term (next 6-8 weeks) I'm not so bearish .

As we approach March (more bearish ) I will continue to moniter the status of the United States debt.

Questions that need answered:

How will credit rating agencies handle another United States $1.1 trillion debt increase without a plan to decrease liabilities? Taxing the top 2 to 5% wage earners at this point is not enough. Cuts in Social Security, Medicare, Medicade, Federal Employees, Federal Employee Pensions, Defense Spending all need to be on the table in order to prevent another credit downgrade.

How will United States economy trend with less Federal expenditures? The US economy has been largely dependant on debt for more than 10 years.

Will the Federal Reserve continue to purchase US debt? The Federal Reserve is now the largest owner of US Debt.


Interesting lines
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