Thanks for that.
From Richard Russell:
Winding it all up -- The Bernanke Fed has shot its load, Fed funds are down to zero, trillions of dollars have been injected into the economy, bail-outs in all directions. The critical question -- Can Bernanke and Paulson halt deflation and turn it into something resembling inflation? IF they succeed, the we will owe them "the world." If they fail darkness will cover the land, and we may be dealing with Great Depression II. In the meantime, we eagerly search for signs that may be pointing to their success -- rising gold, declining bonds, a stable US dollar, and a slowly rising stock market.
The action of the internal market will be crucial, Lowry's Selling Pressure Index will have to head steadily lower, upside-volume will have to dominate down-side volume day after day. New lows on the stock exchange will have to dry up, and the bullish percentage of stocks on the NYSE (BP) now 56% will have to continue higher-- the percentage of stocks on the NYSE above their 150-day MA will have to continue due north. We're now in what I call the crucial test area, if Bernanke succeeds we'll see a bull replace the bear at the top of this site. As I write, nothing so far has been clarified.
Amateur and professional sentiment regarding the economy and the stock market remains black-bearish. We don't follow the sentiment at this office (you can do that with any newspaper), we follow the markets. |
