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S&P 10 minute chart above
There was a lot of excitement this morning, but it didn’t really feel like big rally to me. Yes we gapped up at the open, about 17 S&P points, but then by the close, we basically retraced the whole move. If you bought the first hour, which I rarely do, especially on a Monday, you bought the top.
I was guilty though on a few names and quickly tried to regroup, but I took some cuts. To me the action was ugly today and they made you fight for every dollar.
AAPL continues to act poorly, and that dragged down the Nasdaq today. At one point GOOG tried to move to new highs for the day. but failed miserably in the attempt. Technology was generally weak today.
After the close we learned that New York’s attorney general said mortgage-backed securities issued by Bear Stearns, which was bought by J.P. Morgan Chase in the run-up to the financial crisis, are riddled with fraud. So we’ll see if this is just a paper cut for the banks tomorrow or something worse. My bet is that its a non-event.
The 1430 level has become a support level to watch on the S&P. See you all tomorrow.
Joe