Last week’s trading was negative for S&P500. Even the positive financial reports published by most US companies failed to prevent S&P500 from declining below 1300. The last significant level of support is 1250.
According to the Department of Portfolio Investments, , this week’s focus is still on the US federal debt limit. Besides, the GDP growth in Q2 2011 turned out lower than expected (1.3% vs 1.7%).
Consequently all the sectors found themselves in the red zone at the end of the trading week.
Harry Reid, a Democrat, introduced a plan of budget spending reduction by $2.7 trillion in 10 years on condition that there are no tax hikes. Friday’s voting in the Congress was postponed because of the disputes among the Republicans, which made the situation even more dangerous.
Now the markets are under pressure while waiting for the US debt ceiling issue to be finally resolved.
