Does the organization to the right still have any credibility or generate confidence given their abysmal credit rating performance? Well, some would suggest making macroeconomic calls is different. They’d be right ordinarily but the spillover from the credit rating mess, much of it directly attributed to their organization’s specious ratings, make anything they say hard to swallow. Nevertheless, with markets oversold given heavy put option buying intra-day, trigger-happy bulls found in the S&P report that suggests the subprime mess is almost over the excuse they needed to push the buy button. However, remember, the report carried the large caveat that their estimate was true as long as home prices stop falling. [I think most observers could’ve stated something so obvious.]
Volume on the NYSE was heavy [despite Yahoo/Finance
mathematical ineptitude] while breadth was marginally positive:
So, with the Dow down over 200 points, and being oversold, the S&P report was the straw bulls needed to jump on stocks.