Daily Investment Interpretations

August 23, 2011

2011-8-23: (Tuesday Night): Market indices bounced back today: Stocks stampede higher, Sigh of Relief Sends Stocks Soaring. The NASDAQ Composite leaped 100.68 points (4.29%) to end at  2,446.06. The Dow tacked on 322.11 points (2.97%) to close at 11,176.76; the S&P 500 ratcheted up 38.53 points (3.43%) to settle at 1,162.35. Oil rose to $84.29: Libya oil won't be back online quickly; gold leaped again to 1,910: Gold's next level: $1,900. The VIX inched down 0.61 points to 42.44  
    State of the Markets is describing this as a classical waterfall decline. There is a panicked washout, followed by a bounce, and then a retesting of the lows. Apparently, this latter step has been successful.
    There were several pieces of bad news today:
    New Home Sales Down Again in July 
    Is The Housing Market About To Get Worse?            
    Richmond Fed Index Takes a Dive in August  
    Pay hikes in 2012 won’t outpace inflation  
    Irwin Kellner has written:
Easy money is a mixed blessing.
    Michael Ashbaugh recounts what has happened in S&P 500 rallies from major support, and  Kevin Marder provides a different technical slant in Stock investors catch a glimpse of normalcy.
    Finally, there's Technical Talk: Will It Stick This Time?.
    Market futures are down about ˝ % tonight. 
.   It may be time to buy back in, but I'll wait for an all-clear from State of the Markets before I sally forth.