Market took dive again yesterday but mix for today as bad jobless claim results arise, bad retail and consumer data, as well as more concern about 2009 outlook and bleak economy. In the last few market check post, I have warned that the rise could be a bull trap and the outlook is bad within short term in the post of Market Check Dec 17 - FED rate cut.

Although President-elect Obama’s stimulus plan is thorough but can the plan boost up the market immediately? It is a big question. Of course, it takes time for the market to recover. Will the $300 million of tax cut for individual and business works? How about the total $775 billion stimulus package?

No doubt, this is one of the drawback of the current financial system. The financial cycle will definite happen and it will change the course of the world economy and make the world economy rebalance once again. 

DOW is hitting road block after enjoy almost close to a week of uptrend. Market start to focus on the bad news again, especially the bad job market.  

stochastic is heading south, and MACD is slowly crawling back to bearish zone. 

Resistance is clearly seen at 9000 level. 

Moving forward, the consumer and retail data will be getting worst, so what’s your take for the market direction?

I guess it is quite clear for you …:)

News you need to know: 

- The Bank of England has cut its rate to 1.5% from 2.0% yesterday try to boost economy. 

- Crude oil stay at $40 level

- Gold has risen $13 to $854 today

Happy Trading !