Oh, No: Dow Testing 8000 AGAIN?!?
Relax, pop open another beer. Since the market crashed in late Nov, the DJIA has been trading sideways in the range of 8100 to 9000. This time, however, I feel much better about the decline. Yes, the Santa Claus rally is over (like they said on pbs/nbr today), and the dow has gone down. This time, though, the market is acting rationally and predictably to bad news about the bad shape that banks and retail are in. None of this panicky, almost 1000 point swings in a single trading session (and rallying a few hundred points on bad unemployment news). So, from here, I expect the market to react to the latest economic business news as it should, and to finally start heading up once evidence that the recession is easing appears.