Market Ends the Week Lower

Sunday, February 15, 2009

The market ended the week with an 82-point loss on Friday in a choppy session closing at the bottom of the day's range. The Dow lost 430 points for the week, 5.2% thanks to governmental uncertainty. Word of the week: Geithner. Timothy Geithner excited the market the previous week by indicating that the Treasury had put together a detailed, specific plan for the second half the TARP money involving a bank bailout plan. The market rallied 500 points hoping a new plan may solve many of the banks' problems. But, Tuesday's press conference brought great disappointment to the market as Geithner offered no specifics and outlined broad brushstrokes of a plan that lacked any real detail. The market seems to think the future of our banks is now even more uncertain than before.

The market continued its rangebound action giving up all the previous week's gains. We closed the week at 7,850 just a stone's throw off the lows at 7,449. The strong buying interest that flooded the market Thursday afternoon at the 7,700 level is encouraging as the market rallied 250 points off the lows. Friday saw consolidation action but the 8,000 level will likely be resistance once again. This next week's range may be between 7,700 to 8,000 if nothing gets buyers or sellers excited.


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