August 19, 2008

Yesterday it was asked exactly where was the volume to support the market’s recent selling. Today, the bears responded with a descent amount of volume as the broader markets sold off to the tune of about 1% on the day.

You have a moron journalist at the Times acting as if they are shedding light on something new by claiming there to be another major bank to go under in the near future. This guy clearly is out of touch with reality, if he thinks that the possibility of such is news to the public. It’s not, but nonetheless, it did its damage and caused quite the stir on Wall Street as did the PPI report showing inflation increasing somewhat more than expected.

We did have a solid earnings report out of Hewlett Packard after the bell which beat expectations and provided a solid forecast going forward. This should provide some strength to the markets heading into tomorrow’s open, especially for the Nasdaq.

The S&P and the Nasdaq is starting to show some weakening in their chart patterns, and a trend line that looks to be flattening. Even so, the charts have given us no reason to bail on this rally that has been in place since July. A pullback of sorts was due for a couple of weeks now, however, at some point, each of the indices are going to finds some solid ground in the very near future in order to prevent the market from breaking down once again.

Here’s the Nasdaq and S&P Charts…