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Testy Tuesday – One Step Closer to Disaster

Posted on the 08 October 2013 by Phil's Stock World @philstockworld

The bickering continues but a Washington Post/ABC poll released Monday found that while the public's ratings for the President and both parties in Congress remain very negative, disapproval of Republicans has grown in the past week with 70% of Americans now disapproving of how Republicans in Congress are handling budget negotiations, up from 63% last week.  That's up 10% (of 63%) in a week, so we're just a few weeks away from 100% of the country being sick of these guys.  

A Pew Research poll also released Monday found that 38 percent of Americans blame Republicans more for the shutdown, while 30 percent blame Obama, and 19 percent blame both sides.  A third poll by CNN/ORC found that majorities of Americans are angry at everyone involved with the shutdown: Sixty-three percent say they're angry at Republicans, 57 percent say they're angry at Democrats, and 53 percent say they're angry at Obama.

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Few Americans on either side of the aisle, however, want to see their party compromise. In the Pew Research poll, 77 percent of Republicans, but just 18 percent of Democrats, said that Obama should agree to a deal that includes changes to his health care law. In contrast, 75 percent of Democrats and only 14 percent of Republicans said that GOP lawmakers should agree to a deal that makes no changes to the health care law.

Meanwhile, all this bickering is quietly pushing our market indexes off a cliff with the Dow already failing the 50 dma at 15,200 and heading down to test the 200 dma at 14,800 (sorry, news from the Future again).  The S&P is riding it's 50 dma at 1,680 but failed it into yesterday's close while the NYSE stopped just above the 9,575 line it needs to hold.  This is, of course, no surprise to any of us devotees of the 5% Rule™, as we cashed out at the top but now we're in the zone (down 5%) where we can't be too sure which way things will go:

Testy Tuesday – One Step Closer to Disaster








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