Is this the beginning of the end for the bull market in U.S. stocks?
Global stocks, crude oil and US stocks fell sharply on Monday as investors reacted to the surprisingly sharp slowdown in U.S. jobs growth reported last Friday, which raised concerns about the strength of the world's largest economy.
Even before the jobs report was announced, the markets were reeling right after the markets closed on Thursday, when Egan Jones Rating Company downgraded the US government debt once again, from AA+ to AA, with a negative outlook, citing soaring deficits and the US government failure to come to any workable plan.
“Assuming the federal deficit for 2013 remains at $1.4T and GDP growth is 2.5%, the total debt will rise to $18.1T and GDP will rise to $16.1T, resulting in debt to GDP of 112%. In comparison, France's and Italy's debt to GDP are 81% and 117% respectively.”
This is an Obama recovery!
Short term the market is now oversold and due for a rebound off the S&P 500 50-day moving average, so this is important test.