U.S. stock indexes posted the weekly biggest decline in 2012. At the same time, the index reached new support levels. Now, two factors are coming together: the oversold markets and the ability to rely on technical levels – as a result, we arrive at a situation in which the chances for short-term growth are higher than the chance of an immediate continued decline.
The news background also supports this point of view. In this relation, over the weekend Chinese authorities promised to pursue more aggressive support for the economy and immediately came to the aid of a few relatively large companies. Also, today it was reported that Thailand's GDP growth exceeded market expectations, despite negative impact as a result of natural forces.
