Algorithms and hope reside on trading desks and hedge funds driving stock indexes now. First, we had the faux rally induced by another breech of the 50-day moving average which failed twice. Today we fell below 8K briefly on the DJIA and that set-off some automatic buying and a short-covering rally. This rally however was stopped in its tracks by stories from Bloomberg and CNBC that Bank of America (BAC) needs more governement help and a lot of it. Rumors of nationalization of both Citigroup (C) and Bank of America swirled with $200 billion being mentioned as the amount.
Volume was high today which can also follow a 90/10 down day such as yesterday. But there were some strange goings on in the after market.
Our man in Geneva, Dave Hurwitz, gives us his take on volume and breadth below:
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