Is this the blowout of the rally in the financials?; defining the trading range
In my earlier posts about a shift in the markets i suggested that the july lows of the financials are significant. While i am not at all certain they will hold, i am sure breaking them to the downside will take work and time. From those lows the financials have rallied impressively -as is typical for a bear market bounce. I said in the earlier post that i expected that rally to eventually falter. That would, i said then, define the upper boundary of a trading range that would hold the financials for a time.
Today i am wondering: could it be that the financials defined that upper limit today? Could it be that the hollow euphoria over the bailout of Fannie and Freddie is the blowout of that bear market rally? Somehow that would fit.