Monday, September 8, 2008

Market Mondays

This weekend was clearly a game changing in more ways than anyone can count. Right now the only salient point I can think of is the following:


The Fed intervened in the markets in March when they backstopped the Bear Stearns buy-out. The market rallied for three months.

The market is in a lower low/lower high pattern right now, and is clearly in a downward trajectory. My best guess right now is we're going to see the start of a rally similar to the Bear Stearns rally with the 200 day SMA providing the stopping point/major resistance level. However, I will caution, this is an incredibly fluid situation. So get ready for a bumpy ride because that's what we're going to get