August 7, 2008
You figured this was bound to happen. Another piece of negative news would creep up and spook the markets once again. Today it happened and from an unlikely antagonist: Wal-Mart. No one really expects Wal-Mart to face the kind of problems that other retailers are wrestling with; in fact, many expect the opposite, since many consumers will flee to Wally-World in down times to take advantage of the cheaper prices. Unfortunately that theory didn’t quite work well enough. To say the least, we wouldn’t be surprised to see some downgrades in the retail section coming from the brokerages tomorrow morning as a result of Wal-Mart.
AIG and unemployment numbers also weighed heavily on the markets, especially the Dow and S&P that is comprised heavily of the financials, and for once you heard very little of the price of oil, though it finished flat on the day.
Its important for the bulls to put things in perspective in that the Dow has risen over 400 points before today, the Nasdaq almost 100 points, and the Standard and Poor over 40. That’s a lot, so don’t be too dismayed. Technically, the indices are on the right track, and will need to hold their prior lows, or things could turn ugly once again. But until, don’t lose too much sleep.
Here’s the Nasdaq and S&P Charts…