The Yo-Yo Market
Down morning, afternoon rally, late day selloff...try making sense of this. Bottom line is there was tremendous technical damage done this week. The NASDAQ hit a a closing low (5-year low) on Wednesday, while the S&P 500 hit an intraday low (also a 5-year low) yesterday.
Who's afraid of the big, bad G-20 meeting? Most traders believe little if anything truly substantive will come out of it. "Selling into government intervention has been one of the few good ways to make money this year," one trader said.
Why aren't traders impressed with the G-20?
--U.S. not sole leader
--20 countries make consensus difficult
Likely to be heard from the G-20 meeting: supplementing the IMF, global coordinated rate cuts, and some form of international regulation of the banking system.
For the week: Dow down 4.9 percent, S&P 500 down 5.8 percent, NASDAQ down 7.9, Russell 2000 down 9.5 percent.
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