Where Is The Debt Ceiling Fear?
The major stock indexes have pulled back over the past three trading days as the U.S. politicians have not raised the debt ceiling yet. President Obama and Treasury Secretary Tim Geithner have called for Armageddon in the stock markets if the debt ceiling is not increased. The stock markets are telling us a different story. The major stock indexes all traded into resistance over the past few days and needed to pullback or consolidate anyway. The trading community does not seem to be too worried about the debt ceiling issue at this time.
It is also very important to note that many leading stocks such as Google Inc.(NASDAQ:GOOG), Apple Inc.(NASDAQ:AAPL), and Goldman Sachs Group Inc.(NYSE:GS) have actually traded higher over the past few days. This type of activity in the leading stocks would not occur if the markets were fearful. Most traders and investors are expecting a bounce once Washington completes a deal between both sides. Now things can always change in the markets, however, the fear is just not there at this time.