United States markets closed trading earlier to the downside and another dose of bad news. Reports have been released by fellow media outlets that the S&P, after its recent cutting of United States debt from AAA to AA+ for the first time in history this past Friday, may look to France.
However, some analysts suggest that France is proactive in tackling debt-related problems, and even some S&P representatives will state as such. But nonetheless, the United States market is globally tied around the world as investors funnel cash from one exchange to another. Global markets on the downturn, austerity fears still surround some European nations, all cause global detriment.
Investors and traders alike are wondering what is the underlying cause of the recent slip in value of U.S. indexes and the stocks that they contain. It is no secret that news affects stocks, and coupled with sustained volume of bad news which comes hot of the heels of the United States nearly defaulting for the first time ever, it takes a lot to overcome across the board.
The Dow Jones Industrial Average, the S&P 500, and the NASDAQ-100 all closed within bounds of Tuesday’s trading range which means that bearish momentum has finally halted as consolidation takes hold. Whether there is finally light at the end of the tunnel for investors who have outstanding long-positions is unknown at this time as consolidation currently exists.
But there is one bright note among current market trending characteristics, while today was a down day, at least price action did not dip beneath price levels which were observed yesterday. It’s a start.