Market Update: Market Was Bought Early, 3:00 EST Is Likely Key
August 26, 2008 2:08 PM
The market was bought above 1261 early as I thought was very likely. It rallied to 1275 and change. If we clear 1260.50 to the downside after the release of the number of banks in trouble at 3:00 EST, we will either IMMEDIATELY reverse or we will close at the low of the day. I would guess the latter is FAR more likely.
2:20 Update: They released the list already for some reason. 117 banks in trouble, up from 90 last quarter, but based on the size, no huge banks can be on the list. This “may” save the market today from a big selloff, not sure.
Closing Update: We held 1261 on the cash market and moved up above that. The banking release helped the market into the close because apparently no big banks on the list (they do not list names, just asset sizes). That was a relief to the market and prevented a big selloff.
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