Securities Research Services

Monday, March 17, 2008

Setting Up Ugly Unless Fed Steps In Again

The market is poised for a poor open today following Friday's failure of Bear Stearns. With the VIX popping up again, we may see some type of capitulation take place early this week.

Right now it's best to be short or just out of the way. Keep in mind that the Fed is still a factor. If they drop rates again a short covering rally could kick off. With so many variables that could occur here and with such wild intraday volatility, there is no way to make a good call on the market today. Outlook:

The bounce failed when Bear Stearns collapsed Friday. We may be nearing a capitulation event, but it's early to tell.

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