Late Day Rally? It May Be On In The Stock Market
The markets are down sharply on the day. Europe continues to be experiencing a bank collapse. This mirrors the issues experienced in the United States in 2008. Yesterday, the Dow Jones Industrial Average surged 700 points off the lows of the day in the last two hours of trading. However, today the panic resumed and the Dow is lower by 345 points.
There is a silver lining here and it may spell rally on the horizon. The markets have only retraced fifty percent of the rally from yesterday. This is significant and shows that a possible pivot low is in the markets. In addition, looking at the intra day chart of the SPDR S&P 500 ETF (NYSE:SPY), it is just slowly going sideways on the day. This shows significant strength considering how scared the markets are with the European issues. It may signal a late day rally or a move up tomorrow.
Bank stocks continue to under significant pressure. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $113.58, -9.15 (-7.46%), JPMorgan Chase & Co. (NYSE:JPM) is trading at $35.26, -1.14 (-3.13%) and Bank of America Corp (NYSE:BAC) is trading at $7.12, -0.48 (-6.32%).