The Hot Stock Pick for Today

Hello my readers friends. The stock market is facing a very difficult situation. The bad news are presented one after an other, while technically, the market conditions worsen. Yesterday, the solution of the problem of limiting government debt to generate enthusiasm among investors. Unfortunately, this situation lasted only a few minutes. The ISM manufacturing report was worse than expected, causing a rapid drop in the market. But perhaps this was not the worst. The feeling the economy does not grow enough this sowing doubts about the future. Some even are speaking -and writing- about the possibility of a new recession. Given this situation, it seems that uncertainty is gripping the market, which can be very dangerous. The SP-500 closed at 1,287 points, again threatening the minimum level reached en March (1,250 points). This market could be building a Head and Shoulders formation. Again, if the SP-500 broke the 1,250 points, I think we could be facing a clearly downward. I would not be surprised if in the days following, the announcement of any program to change this situation (QE3?). Or we will have to wait if the market is capable by itself of promoting an increase to generate a bull breakout. Please click on the chart to enlarge.

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