Tuesday, February 19, 2008

Market Fun

The US stock markets followed through last Wednesday, February 13th, marking the confirmation of a fragile new rally. The strength of that rally was challenged immediately with the NASDAQ dropping 41 points Thursday and nearly 11 points Friday. The rally was not officially killed--- although CPR was needed over the three day break.

Which brings us to this morning. With US markets closed yesterday, the Asian and European markets performed fairly well. Futures for the S&P and NASDAQ100 are strong as we go into the open. But the final hour or two today will tell the tale-- not the open. We'll learn that we should either continue to stay out or that it's OK to start trading lightly. Nothing that can happen today will say, "Plunge in!" however.

The bell has rung and the NASDAQ opens up 27.

UPDATE: The NASDAQ's high for the day was right around that opening trade. It was weakest in the final hour. Not a good sign for a rallying market.