Stocks Rebound Off Lows, Close Flat

Thursday, February 12, 2009

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A Reuters report that the Obama administration is working on a plan to subsidize homeowners struggling with payments fueled a late-day rebound in the indexes. After trading lower nearly 250 points into the afternoon, the market turned tail and rebounded sharply closing down only 7 points for the session. Banks and home-building stocks experienced the sharpest turnaround after trading lower throughout session on continuing disappointments with the Geithner bank plan and lowered tax cuts for homebuyers in the final stimulus bill.

This large rebound shows that buyers remain in the market and the low end of the range has been bought once again. The struggle with this market has been that buyers are willing to step in at the low end of the range but do not have a continuing interest as stocks move higher. Every attempted rally begins to encourage the bulls but they are forced to bail on their positions as the top end of the range brings bouts of selling. The ranging action continues, likely for months.

1 comments:

Alfred said...

True that.

(cool, this works now!)

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