Various pundits say the U.S. budget and debt limit crisis could affect the markets and possibly unravel the fragile economic recovery that apparently is on its way. If Monday's preliminary collective mood charts are even close to the final version we will publish in about 18 hours, there could definitely be a problem.
Our preliminary charts for Monday show a plunge in the mood reflected by the news. They also show social mood dipping below support. Does this mean a sharp market drop is at hand? On Friday, in our after market notes, we shared this: "If both the mood and the news go south over the weekend, that could spell big trouble next week."
Hmmm...
Below are the preliminary charts for Monday. They show a 1-2% drop is possible on Monday. The news chart is pretty ominous looking, but the top one, the social mood chart is actually hopeful, as it is bad but not terrible. As that will be behind the decisions made, and it hasn't solidly broken down, markets may hang in there and not drop precipitously. Perhaps there is even a chance for a last minute deal. Stay tuned for the final chart early Monday morning.
Our preliminary charts for Monday show a plunge in the mood reflected by the news. They also show social mood dipping below support. Does this mean a sharp market drop is at hand? On Friday, in our after market notes, we shared this: "If both the mood and the news go south over the weekend, that could spell big trouble next week."
Hmmm...
Below are the preliminary charts for Monday. They show a 1-2% drop is possible on Monday. The news chart is pretty ominous looking, but the top one, the social mood chart is actually hopeful, as it is bad but not terrible. As that will be behind the decisions made, and it hasn't solidly broken down, markets may hang in there and not drop precipitously. Perhaps there is even a chance for a last minute deal. Stay tuned for the final chart early Monday morning.
(click to enlarge)
(click to enlarge)
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