Debt Limit Debate Rules

George Brooks |

George Brooks Stock MarketBrooksie’s Daily Stock Market blog: An edge before the market opens.

Wednesday, May 18, 2011 9:23 am EDT

DJIA: 12,479.58
S&P 500: 1328.95
Nasdaq Comp.: 2783.21
Russell 2000: 820.36

My position on the U.S. stock market and economy is unchanged. I still believe this market is hostage to the Congressional hassle about increasing the nation’s debt limit. Normally this is not done with all this debate, but concerns for the nation’s rising national debt has precipitated the need for action.

Solutions are difficult to reach, as evidenced by Oklahoma’s Tom Coburn ( R ) withdrawal from the “Gang of Six” a bipartisan group that has been working toward an agreement.

This issue will dominate headlines more and more as the August 2 drop dead deadline approaches for a decision to raise the debt limit, something that has been done more than 60 times in the last 50 years.

Today: Near-term overhead supply is DJIA 12,550 (S&P500: 1338).

While my projected support at DJIA 12,370 ( S&P 500: 1320) held yesterday, it is not cast in stone.

George Brooks
Sensible sleuth@gmail.com

Note: I am on vacation but will post when possible.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CMRE.P.B Costamare Inc. Perpetual Preferred Stock Series B 22.50 -0.20 -0.88 250

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