Gear up federal debt ceiling or face meltdown.

US lawmakers must raise the $14.3 trillion federal debt ceiling,that is raising the legal limit on government borrowing limit by Aug. 2 failing which there will be a financial tsunami that will send ripples to all sectors of the financial world like a domino effects.A U.S. default could throw the economy back into recession and create panic in global financial markets.
President Barack Obama has called for compromise as party leaders seek to craft a deal that raises the legal limit on how much the U.S. government can borrow while slashing projected deficits over the next decade. Democratic and Republican leaders have been meeting, but discussions have faltered over taxes.
If Treasurys are no longer risk-free, then all financial assets have to be repriced against another a benchmark and there will not be any more safe haeven for all assets class.Interest rates on all forms of debt -- mortgages, car loans, government -- will spike, resulting in a renewed credit crunch.
Borrowing will come to a halt. Business will come to a halt. And even more troubling is the possibility that a halt in the flow of credit will cause commercial paper markets to dry up, resulting in a run on money funds.
Meanwhile Moody's Investors Service and Standard & Poor's both threatened to downgrade U.S. debt which was announced after the market closed.The ratings agency said it was placing the United States' Aaa rating -- its top level -- on watch for a possible downgrade cited "a rising possibility" that Congress and the White House would not agree to a deal to raise the nation's debt limit on a timely basis.
Separately, Standard & Poor's privately has told lawmakers and business groups it might cut the U.S. credit rating if the government fails to make any of its expected payments -- including Social Security checks -- even if it makes all its debt payments, sources told The Wall Street Journal.

Tracking the Dow on Wednesday,13/07/11. Economic events:Import Export prices,EIA Petroleum Status,Bernanke Speaks. Dow futures 2 market days to expiry.
9:30am:--Bullish 40.0 point gap up.

10:30am:--Session high,Unshaven bullish marubozu followed by a bearish inverted hammer.

11:30am:-Morning star and bearish engulfing.

12:30noon:--A double top morning star.

1:30pm:--Hangman at bull pivot support.

2:30pm:--Graveyard doji at MAV support.

3:30pm:--Opening gap being half filled.Bearish hammer.

4:00pm:--Last minute short cover,a bullish hammer at the bearish pivot support.
July mid week candlestick is now a bearish hammer.Pairing it with previuos week will be a bearish harami which is highly risky for an imminent crash.Stocks got an early boost after Beijing reported that China's gross domestic product (GDP) grew 9.5 percent in the second quarter, slower than in the first quarter, but still beating analysts' expectations.
Bernanke fuelled the bullish sentiment on Wall Street when he told the US Congress that the Fed was prepared to renew its stimulus efforts if the country's economy remained feeble.The problem of the debt ceiling affected the markets today. The Dow's big rally stalled out in the late morning and nearly fell apart entirely in the last hour of trading.