CHESSNOID

The market losing streak has finally been broken on all 3 major indices after losing 10% in the last 6 days. And they seem to come back in a pronounced bounce. The main reason was because of the Federal Reserve intervention. That is positive news in the sense they are aware of the credit crunch. Hopefully, it will have a nice long term effect on the economy. They are definitely sending out a positive message at this point. To continue this type of direction, I think they will have to be vigilant in their reactions to the news that is forthcoming in the next couple of quarters. That in itself will help give investors to stay in the market.

My belief is the market was oversold and that alot of investors went bargain hunting today for good deals. The momentum should continue into next week, not that the option expirations for this month have expired. Looks like the 3 indexes I watch made it over some psychological barrier numbers. They aren’t true support, but I think it helps they all stay above those round numbers. The Dow literally was at 14,000 points not less than 2 weeks ago, and it shaved off 1,000 in a dramatic one week drop. This ride back up the rollercoaster should last a few days before giving back some of the gains.