Category: General Market NewsSort
We formed an inside day. Technically, the market can go either way, but it usually marks a period of consolidation which marks a continuation in the trend. The market (SPX, DJIA, COMP) is sandwiched between the 30-day MA and the 50-day MA and there's going be more neutral trading.
We all know the story of the recent market activity, but if you're inclined to review the gory details and, perhaps, enhance your historical perspective along the way, the Bank for International Settlements has just the report you're looking for. Yesterday's release of the December 2008 installment of the BIS Quarterly Review is a sobering publication, to be sure, given the events of late.
Over the past few months, all relevant instruments of federal economic policy have been brought to bear to contain the global credit cruch and stave off a depression. To their credit, so far, it appears that such an outcome has been avoided. And make no mistake, the world does not need to endure a depression at this point in time.
I stated that I was not convinced of this rally and I'm still not convinced. However, this doesn't mean that the bears are at an all clear right now. Canceling out yesterday's gains was Step 1. Step 2 is to break down below the 820 support level and today's action has made that probability slightly higher.