March 13, 2008
Overnight sell-off in the global markets due to the uncertainty of whether the Fed’s bailout plan could actually work, caused the futures to be significantly down heading into the market open. However, a report from the S&P stating that the majority of the bank write-offs had been announced, allowed for the markets to rally from as much as 200 points down to finish in the green.
It’s difficult to get overly excited about the S&P’s report. There continues to be significant write-offs and until these write-offs actually subside, housing inventories decrease, and foreclosures settle, it will be hard to put too much faith in just one report.
Let’s review the charts…
NASDAQ staged an impressive rally today after overseas turmoil put a dark cloud over the market’s open. We continue to rally off of oversold conditions, but trade in a downward trend.
CLICK HERE FOR THE NASDAQ CHART
S&P was equally impressive today, but was unable to close above the downward trend line. A break of this trend line and subsequent break of the 50-day moving average would do much to change current sentiment.
CLICK HERE FOR THE S&P CHART