I have to take the time to express this thought: you couldn't spin through the dial this weekend without running into constant coverage of this bailout package (call it whatever you want). the news of the past week, the bailout, the near failure of Wachovia, Wamu, LEH, Fannie, Freddie, etc, etc have to be weighing on the minds of Joe and Jane 6-pack. Don't you thnk there is a real possibiility that many of these people have already called their brokers (over the weekend), and requested movement out of market ([ension plans 401K, personal funds) and move into cash equivalents? Doesn't this represent at least the potential for a shakeout (spring) before anything to the upside can unfold?
looks like we heading to 1180 level. not sure how low this thing will go, but expect a rally this week. We are way oversold short term, just waiting for the fuse - probably the baillout getting approved.
1. A down gap of about 20 pts. 2. A selloff from open of 30 pts. Million dollar question today - Would we run up to fill the gap by close?