There Goes that Gap
19th February 2008
A strong 4th quarter earnings report from Walmart (WMT) helped the DJIA to gap open up over 100 points this morning. As often happens in a bear market though, things started to move south in a hurry. After lunch the Dow tried to bounce back, but when it could not break above the opening range the sell off quickly closed the gap and even a little more.A major reason for the end of day fireworks was the fact that Crude Oil closed over $100 per barrel for the first time ever. That certainly could bring back some of those inflation fears to the FED.
The bad news in the financial sector is is still overwhelming the good news, so there is no reason to think the market will not at least test the January lows.
- JD