Monday, November 24, 2008
A Lull Before The Storm?
Last week was not a good week for stocks but they ended on a positive note on volatile option expiration Friday. The Dow gained 494.13 points Friday to close the session at 8,046.42. The SPX added 47.59 points to end on 800.03.
If you read the news Friday’s strength (basically seen in the last hour or so at the end of the day) was on the back of the markets applauding President-elect Obama’s choice as Treasury Secretary, New York Fed President Timothy Geithner. Mr. Geithner is, apparently, well respected..... and he have to be if he is going to help bring the economy back!!
Despite the rally Friday all the major market indices saw double digit percentage losses on the week. The real issue, as mentioned in previous posts is that the SPX has broken and closed below its major support of 800. Stocks will need to find new support and nobody knows where that will be.
I'm betting this market will rally to the 830 to 850 area then head back south again real quick for the next leg lower. Its at this range where we will be looking to get our next play on.
Until next time.
If you read the news Friday’s strength (basically seen in the last hour or so at the end of the day) was on the back of the markets applauding President-elect Obama’s choice as Treasury Secretary, New York Fed President Timothy Geithner. Mr. Geithner is, apparently, well respected..... and he have to be if he is going to help bring the economy back!!
Despite the rally Friday all the major market indices saw double digit percentage losses on the week. The real issue, as mentioned in previous posts is that the SPX has broken and closed below its major support of 800. Stocks will need to find new support and nobody knows where that will be.
I'm betting this market will rally to the 830 to 850 area then head back south again real quick for the next leg lower. Its at this range where we will be looking to get our next play on.
Until next time.
# posted by Paul @ 5:34 AM 
