Thursday, August 7, 2008
Day of Death
Very interesting day today. The news flow from last night and this morning was just incredibly bad. It looked like a death blow. Somehow the markets seemed to all but ignore it early on. The NASDAQ was up mid morning. Absolutely incredible. It showed how strong the desire the market has for a sustained multi week rally. It was not until the Citigroup news came out that things started to roll over. It was finally just to much for those buying stocks. As it is, I didn't think the day really told you anything. In financials and the S&P you have a higher low if the market can hold tomorrow. The XLF needs to break 21 and the S&P needs to break 1250 for me to start thinking that maybe the markets will shake off the idea of a multi week steady drum beat higher. Who knows, but if we don't, I will continue to think we are moving higher.