Looking at the daily charts gives further evidence of consolidation. Yesterday the averages printed a large upward moving bar on strong volume. Today we have smaller bars on smaller volume. It is possible that today's action on the IWMs and SPYs formed a spinning top. But I still think we're going to see a more complete move up based on this week's panic slashing from the Fed and the possibility of another 50 BP at their next meeting.
2 comments:
More likely a sucker's rally within a bear market trend, or a "bear market bounce." Just wait a week and strap the parachute back on?
Yeah, that is what I want to know. Most seemed of the opinion that the rate cuts alone wouldn't have much of an effect a few months out. But now with the nice check from the government, as well as raising of the limit on Mac and Mae loans to make refi easier in expensive markets, will this now be enough to mitigate the problems, or are the fundamentals so bad, the inevitable is merely being delayed.
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