i WOULD HAVE THOUght the market on a friday would get smashed 500 pts on this news... The market has held this 11700 area a bunch of times.It might be just building up to smash down to 11000 but so far you have to think with all this bad news that it would be down way more... Personally it feels like we are in freefall with housing,rising gas/food but maybe market is pricing it in already? The saving grace may be lo p/e,very high bearish sentiment.
The shorts took the selling today as an oppurtunity to cover. Who wants to be short ahead of next weeks 100 bp cut? With few shorts left to cover next week the market will probably tank again soon after the cut.
US markets are controlled instruments and well manipulated. They dont crash of get " nuked". I called markets bluff today in front of 500 traders in a chat room. And as expected SPX came down and stopped on the dime around 1270 area. IF you look at the daily charts on SPX and SPY you will see SPX has come down here 6 times in 6 weeks since Jan 22nd 2008. Look at the long red candles that grace these pitiful days. It stops here on a dime. Reverses back and than the bears come out with steely knives turning your screen crimson red..the story repeats itself again and again. Horrific. Have some security, sleep tight and know you are in good hands. No it will not crash. No one at Wallstreet would kill its golden goose that lays golden eggs. What would they do ? Work at a car wash in Manhattan ?
I agree 100% percent. How much Bears and Stearns is part of S&P 500 ? Whats the weight on S& P ? But SPX took a nose dive 300 points. The pilots of doom were navigating murky waters... all day!
The Markets will rally for few days and than the insecure, pathetic, depressed, pessimist day traders, shorts will come out with steely knives trying to kill the beast. Blood will flow on your screens.. Rally in the AM sell off in the PM. Go home flat. Count your nickles buy enough Jim Beam and puke out on your linoleum floor.... what a great life!