Thursday, October 02, 2008

NASDAQ Technical Picture - Lower Low

After two inside days, the markets gapped lower despite the SEC temporarily extending its ban on the short selling of certain stocks and the Senate handily passing a financial rescue package, as there is still uncertainty whether the plan will win approval from the House. Adding to the negativity, initial claims were higher than expected and short term borrowing rates and spreads (LIBOR, LIBOR-OIS spread) continued to climb. Today's sell off was broad based with gold, oil, and commodities pacing the way lower.

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