Market to the down side

The Market tested 1800 and failed, later tested 1785 and fail and later tested 1780 and found support for now.

We have to wait until tomorrow to see if this levels are cheap enough for the bulls.

If we break 1775 we can see much lower levels around 1750 which would be a considerable retracement from the highs.

At the start of the week, the markets held onto the huge gains that were obtained in last Friday’s trading. After today though, all of those gains have been given right back. The Dow settled with a triple digit loss as it gave up 130 points. The S&P500 lost 20 points while the NASDAQ and Russell2000 shed 57 and 18 points, respectively.

This trading activity was on the heels of a budget deal that Washington came up with late last night. This deal is to reduce automatic spending cuts and deficit levels by $23 Billion over the next 2 years. The agreement will prevent a government shutdown that the country already faced in October. It’s not yet official as the House of Representatives will vote on the budget this Friday. If that passes, it will need to go to the Senate.

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