The Dow Jones Industrial Average broke its Nov 2008 lows this week. It closed below its psychological low of 7552.29 on Thursday trading session. This point to further weakness down the road and the index may go down further to test 6000 level.
Rumors that Bank Of America and Citigroup could be nationalized brought pressures to the financial sector. The White House on Friday insisted that the US government is not trying to take over the two financial institutions. Bank Of America closed at $3.79 and Citigroup closed at $1.95.
The financial sector is still deep in “Bearish” territory. Looking at the XLF, the sector fund tried to move out of “Bear” territory but fell right back into it on 7 Jan 09. It has since stayed in “Bearish” phase for 31 trading days.
It looks like the market needs to find a lower bottom before a rebound can take place.
Rumors that Bank Of America and Citigroup could be nationalized brought pressures to the financial sector. The White House on Friday insisted that the US government is not trying to take over the two financial institutions. Bank Of America closed at $3.79 and Citigroup closed at $1.95.
The financial sector is still deep in “Bearish” territory. Looking at the XLF, the sector fund tried to move out of “Bear” territory but fell right back into it on 7 Jan 09. It has since stayed in “Bearish” phase for 31 trading days.
It looks like the market needs to find a lower bottom before a rebound can take place.
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