The markets are lower on fear that the bill to raise the debt ceiling and cut spending will not pass this evening. Many politicians have come out publicly today voicing their displeasure with the bill. After a major gap higher in the U.S. markets, they fell sharply. The SPDR S&P 500 ETF (NYSE:SPY) is currently trading at $128.01, -1.32 (-1.02%).
AK Steel Holding Corporation (NYSE:AKS) is trading at $11.70, -0.45 (-3.70%). The stock has been hammered since earnings were released back on July 26th, 2011. Just today, it is inching into a major pivot low which stands to be support for a long. This level is shown on the chart below and is at $11.45.
All eyes will be on the vote this evening. If it does not pass the markets will most likely dump in dramatic fashion. It is possible to see the Dow Jones Industrial Average lower by 500 or more points tomorrow. A debt downgrade would likely follow. It is unlikely it does not pass but there is always a small chance. Should it pass, expect a gap and go tomorrow.
Gareth Soloway
InTheMoneyStocks
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