Bad news weighs on the market

The title sounds like a headline from any news outlet.  I just cannot come up with an attention grabbing title.  Admittedly, it has something to do with my limited time to monitor market lately,  it  also reflects that, comparing with weeks before, the market has been relatively quiet last two days.

In my opinion, the market has more to do with failed buy out attempt of CCU.  the pre-market was down even before any economic data is released.   The concerns of the market  still focus on  financials, housing.   Other news are just footnotes.

The market, albeit down, is still within the range.   the DJIA is still holding above its 50 day MA.  also, volumn was low.  So, maybe the selling is just profit taking after the run ups of major indexes last week.  If we could get some good news from economic front, we may see a positive bounce tomorrow, who knows ?

The problem concerns me is the financials,  XLF was back below its 50 day MA today, a disappointment for sure.  if financial still behaves like last few monthes, with 50 day MA as its resistance, then, our hope for a some quick rebound of major indexes may have to wait.  So, obviously, that is one area we need pay particular attention.
 
$VIX is at 26, it is relatively low for the year, so, the whole 2008 has been very volatile.

Technology has been my hope for the last few weeks,  it is put into the doubt after oracle's earningstoday, so, let's see how it will behave tomorrow.   if the sector is truly strong, then, we should not see some big loss from other tech names.

Ok. good luck to all