After SPX approaches 1250, the support line of year 2005, the market finally see a rebounce. The rebounce will not last long and should serve for a chance to unload the share for lower cost. The rebounce could be strong.
Following its “surprise” rate cut yesterday, the Fed released this statement.
“The committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction, as well as some softening in labor markets... Appreciable downside risks to growth remain.”
2 comments:
We haven't gotten hit by any real bad economic data yet. Fed cut to save the financials and was viewed as reacting instead of acting. So, you are right this will be just a bounce. Everything is going to be tied to next week's Fed meeting. If they don't cut or even cut too little, it will be all over again. Time to consider buying a house though if you have the money 'cause the rates is going to get lower.
I will agree upon your opinion, hooper.
Post a Comment