An oversold rally has started this morning. The market may have put in a short term bottom. Market psychology has reached unprecedented levels of fear and the rubber band has been stretched to the limit on the downside.
Chairman Bernanke's soothing talk this morning has finally given the markets some hope that the Fed is starting to wrap its hands around the banking system problems, although he waffled on the marked to market issue. I'm from Missouri with regards to Bernanke, but any excuse could get the market to rally at this point
My gut is that the market will establish a new trading range with yesterdays low as the bottom. The market will eventually establish a high for the trading range of say 7,800 - 8000 and then gyrate until it gets more clarity about the future.
Chairman Bernanke's soothing talk this morning has finally given the markets some hope that the Fed is starting to wrap its hands around the banking system problems, although he waffled on the marked to market issue. I'm from Missouri with regards to Bernanke, but any excuse could get the market to rally at this point
My gut is that the market will establish a new trading range with yesterdays low as the bottom. The market will eventually establish a high for the trading range of say 7,800 - 8000 and then gyrate until it gets more clarity about the future.
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