Yesterday, it had a good day. The DOW went up more than 280 points, which covered Friday's lost. S&P was strong too. But NAZ was a little bit weak.
This morning, it gave some back. It was down more than 100 points at early. But around noon, all the indice came up with green again. The market is waiting for Fed's statement around 2:15 pm. Basically, it is in a stall mode. From what I observed, I incline to believe that the market is ready to pop up. Mainly based on a few things:
1. TA: Last Wednesday 8/1/2007 was the first rally with Dow's volume over 5B. Yesterday was a follow up, the volume was over 5B again which was larger than the most volume in any down days.
2. FA: The sub-prime issue has some impact some loan companies but not in a wide-spread mode. A few lender such as WFC and CFC are very healthy. Big investment banks stocks are rebouncing very strongly. US market returns are among the lowest of the world. With its current devaluation, S&P gain barely covered its lost for the US dollar. So it is a very cheap market.
3. Policy: Fed is definitely ready to save the market.
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