Pessimism over the government's bank plan continued into today after the initial reflexive gap up was faded and the market traded down around 40 by mid-afternoon. A bid came into stocks at yesterday's lows as bulls tried to hold the level. The announcement of the finalization of the stimulus bill at three o'clock ignited a move off the lows for a close 50 points higher on the day. The final stimulus package has been coordinated and the final votes should be cast this week. Research In Motion took a 14% hit closing down 8 points on the day after issuing guidance at the lower end of expectations. Banks found some bottom-fishers after yesterday's drubbing.
A small, 50-point bounce was the type of action expected after yesterday's 380-point fall. The market will likely need some time to absorb the massive selling that hit stocks yesterday after Geithner disappointed investors. We are back to the lows of the year below 8,000 and more range-trading will likely ensue.
0 comments:
Post a Comment