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11/20/2011

November 21, 2011 Leave a comment

With deadline approaching, any announcement or outcome of the Super Committee in U.S. Congress on spending cuts could significantly impact the financial markets in this coming week. Currently any technical analysis about the markets can be easily overridden by political battles on U.S. federal deficits that have a dominant power to shape political and economic landscape heading into a volatile election year. No market update this week.


Intra-Week Update on 11/23/2011
Alert: Broad Market Instability Index is Rising above the Panic Threshold

The Broad Market Instability Index (BIX), measured from over 8000 U.S. stocks, closed at 151 on Wednesday. This reading is above the panic threshold level of 46 and is the highest reading since October 5. It indicates increasing market instability on U.S. Super Committee failure. The BIX is plotted in the following chart as compared with the Wilshire 5000 index.

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