The American-Chinese classical tango..

Wall Street suffered its worst slide of 2010 on Wednesday as investors worried that lending restrictions in China could hurt the global economic recovery. Threats of tighter monetary policy in China and increased bank regulation combined with a sell-the-news mentality to drop the stock market for its worst single-session percentage loss in nearly 12 weeks.
President Obama stirred concern for financials with the announcement that plans are being put together to ensure that no bank will own, invest in or sponsor a hedge fund or a private equity fund, or proprietary trading operations unrelated to serving customers for its own profit. Further, the proposal will place broader limits on the excessive growth of the market share of liabilities at the largest financial firms. Though details of any such plan will change as it moves through the legislative process, the idea behind such a plan is a negative for big financial institutions.
The announcement seemed to exacerbate weakness in Goldman Sachs (GS 160.87, -6.92), which had already succumbed to profit-taking by participants who believed that its better-than-expected earnings of $8.20 per share had already been priced into the stock. The company's in-line revenue results also dulled the glimmer of its upside earnings surprise.
President Barack Obama's recent trip to China was treated to a lavish dinner included chicken soup with bean curd, Chinese-style beef steak, stir-fried wild rice stem and asparagus, and roast grouper, along with Chinese red and white wine which took place in Beijing at the Great Hall of the People.
This time around,Obama has his hand to be a chef of the financial market stirring further the already boiling chicken soup.Afterall it takes two to tango.

The Dow crashes on Thursday,21/01/10.

The 7th day to Asian Index futures expiry.
9:30am:--Spinning doji,the US Dollar Index gained.

10:30am:--Three powerful bears ransacking the market.

11:30am:--A deep bungee dive,finding its session bottom.

12:30noon:--Hoovering nearing session low with technical rebound.

1:30pm:--Usual time for a rebound to MAV resistance,but there's no life.

2:30pm:--Attempt to pierce the bear pivot resistance failed.

3:30pm:--Pullback again to near low.

4:00pm:--Bearish engulfing.It takes two or three bearish days to complete a pullback.

China on wednesday curbs banks lending and on the following day,President Obama follow suit.

This joint statement is a classic blessing in disguise for the Dow index to find a lower shadow.

Hence the upper shadow candlestick is now +335.40 points ahead of the bears which is a mere -53.36 points.

So the benefacto effect will be Goldman Sachs again who will be short-covering the market and later declare another round of hefty profits.Very unscathed.