However, the 7-day chart indicates we're not out of the woods yet. Notice we still have resistance at the lower part of the triangle formed over the last 8-10 days.
And here's the daily chart. There are a lot of ways to look at this. There is really high volume, which could indicate a selling climax. However, we're still below a ton of resistance and the market is clearly in a downtrend. Combine that with the overarching credit market situation and you still have pretty strong downward pressure.
2 comments:
Short squeezes on financials seem to have been a major issue. Plus, perhaps news of HP's results leaked.
My focus is more on foreign markets (and currencies) which have been suffering incredible losses. FTSE -4.1, KOSPI -6.9, SENSEX -4.28. Yen up sharply, Euro down.
So, people are pulling out of investments abroad, pouring it into Treasuries, and buying US stocks opportunistically.
But I don't think it can last. At some point, a bunch of money from mortgages has to disappear off of balance sheets. Most of that still appears to be in the US. Maybe some of it can be pushed off onto the US taxpayer. But the net long-term effect is still the same as if large amounts of cash was consumed in a fire: chiefly, major damage to the American economy.
Charles of Mercury Rising
www.phoenixwoman.wordpress.com
Bonddad, is there any way of knowing WHO was behind this late buying spree? Am I just being paranoid when I wonder whether it's some type of market manipulation using "liquidity injected by the Fed" (in other words, money created out of thin air and "lent" to banks to spread around)?
It might make sense from a tactical standpoint to turn a 300-point drop on the Dow into a 15-point loss, to quell the falls in markets that are marching around the globe like dominos, each reinforcing the next. Can such a scheme be done? Not ethically or legally, but when you keep in mind the other unprecedently crooked actions taken by the cabal currently running things in the U.S.... And such a move would serve to bail out their rich friends!
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