Tuesday, September 30, 2008

NASDAQ Technical Picture - Markets Recoup Post-Vote Meltdown

The day after the markets posted their largest point losses, they surged to erase Monday's post-vote meltdown. The markets gapped higher off the open amid expectations that the bailout will be passed as soon as Thursday. Bargain hunting was the theme of the day after the huge declines and a number of very extended technicals. The morning was mostly range bound within the opening range with a lot of backing and filling. After lunch, the morning range was broken to the upside and prices marched steadily higher throughout the afternoon. Gains were virtually across the board with Finance (Bank +15%, Insurance +12%, Broker +10%) pacing the way along with Coal +10%, Steel +7%, Internet +6.8%. Little was on the negative side other than safe haven, precious metals.

I'm hearing that the senate will vote on the bailout package tomorrow, ahead of the house, which presumably will reconvene on Thursday.

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