A local top?Posted By Paul Kammueller |
Today's action after Friday's snap-bak rally was not encouraging. The downdraft in the Nasdaq pretty well engulfed the Friday rally, right after the Thursday selloff had done the same to Wednesday's.
This may be a technical manifestation of some dicey fundamental market issues. With the ongoing unwinding in the mortgage and real estate markets going on, at the same time oil is busting past $85 per barrell, with the dollar weak the Fed is increasingly getting painted into a very tight corner.
In other words, there are some fairly flaky things going on that didn't appear to be reflected in a market where the Dow was breaking record highs just a few days ago.
This may be a technical manifestation of some dicey fundamental market issues. With the ongoing unwinding in the mortgage and real estate markets going on, at the same time oil is busting past $85 per barrell, with the dollar weak the Fed is increasingly getting painted into a very tight corner.
In other words, there are some fairly flaky things going on that didn't appear to be reflected in a market where the Dow was breaking record highs just a few days ago.