is quite important. if the financials show weakness there on monday, a breakout into bull mode is highly unlikely. in fact, i highly doubt that even if there is a breakout that it will last.
currently, the markets need to go significantly lower. even though the interest rates will continue to drop to the floor, nothing the fed is currently doing will prevent the drop of our $USD and fight inflation.
think of all the billions of dollars being injected into the currency system everytime a bank borrows through the discount window. simply supply and demand will tell you that the supply far-exceeds demand, which results in lower valuation.
that on top of the many other factors points further down in this bear market. trade with caution if you aren't in cash and watch for the action in the markets [banks] and with the $USD/gold.
$47.72 (03/23/08)
