The Twentieth Century belonged to America. The Twenty-first Century seems to belong elsewhere. After all, the markets highlighted below “may” have their own momentum and, for the most part, don’t have the housing/financial mess that exists in the U.S.
There’s a lot of action to come this week. Tuesday rumors hit the tape of a Countrywide (CFC) bankruptcy, quickly denied, and stocks hit the skids quickly. This represents the acute anxiety prevalent we mentioned yesterday.
There is more talk, or possibly a surprise interest rate cut, from officialdom. The longer that possibility hangs over the market the less effect it will have ultimately. But, should the markets close at around these levels by the end of the week, we’ll no doubt be staring at a bear market. If 'Dow Theorists' are to be believed, they got their bear market signal with Tuesday's action.
Have a pleasant day.