Banking index bounce off lows of 2002

6/24/08

Banking index was bounce off the lows band area of 2002 (60.36-60.87) today lows is 60.01. Broker-dealers index close above recent support level. VIX ended close touching the uptrend line. So if VIX is trading below that trend line tomorrow morning, it provides some relieve for Bulls on US stock market. This FOMC meeting result most likely would be no change on interest rate. But the statement could definitely affect all market participants thought. Anyway, my opinion would be statement would be hawkish. The US dollars would go up and normally would get the market recovery from lows of 11740 area. Even if this guess correct, I am still bearish about the market. Anyway, let see if fundamental plays the day tomorrow or not. The S&P is formed high wave spin Doji star which means bulls and bears are in balance. The market still lack of direction.