HEADLINE THAT SPEAKER BOEHNER SAYS MEETING WITH THE PRESIDENT WAS ‘CONSTRUCTIVE’
That’s the news that just came out. The DOW immediately rallied 100 points So instead of the market waiting on the Fed, the market now waits on a “solution” to the fiscal “stiff!” Just keep in mind, there isn’t any solution as all that will happen is taxes will go up and they will lie about spending cuts. Market was and is overdue to bounce…but when in no man’s land, you never know from where and when a bounce will come. One may be at hand. Keep in mind, in bear phases, bounces serve one purpose…to relieve oversold, stretched and extended conditions…until sellers show up again. The NASDAQ was amazingly at the lows today, almost 200 points BELOW the 200 day average. That is extended. Also…so far, bounces have lasted hours…not even days…which is the worst of all worlds for the bulls.