The market finished the worst January on record in fitting fashion, a 148-point fall. The market was trading lower pre-market anticipating a disappointing advance GDP number, yet, fourth quarter GDP came in at an annual rate of -3.8% beating the more pessimistic expectations of -5.5%. The market rallied positive on this news and opened higher. Slow and steady selling hit the market throughout the morning. A lunchtime bid to the markets rapidly deteriorated after CNBC reported that Congress' bad bank plans were to be suspended indefinitely as Wall Streeters and congressmen struggled to come to agreement on the pricing of bad assets.
Any amount of buying interest continues to be met with selling. Bear markets typically end with this long, drawn out, back-and-forth action. The market is not moving and traders continue to look for too much follow-through on both sides of the tape. Sellers cannot take the market lower but buyers cannot seem sustain any rally attempt. Eventually one side will win this battle.
0 comments:
Post a Comment