Some will argue that today was that inevitable “dead-cat bonce”. That may be true, but the strong volume, and the rally off of a fair amount of significant selling in the early going, is enough to make you consider thinking otherwise. We also have seen a lot of volatility of late; huge rallies, followed by significant declines and vice-versa and that can often mean, that the tide is turning also.

At this point it is too early to tell, however, the market is coming to grips with the idea that Lehmans (LEH) is done for and Wasington Mutual is at levels that haven’t been seen in decades. So the question now becomes, “how much more garbage from these financial institutions have the markets yet to price in?”

Here’s the Nasdaq and S&P charts…

NASDAQ

 

S&P

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