Boring Til Fed Time

Well the day was boring, reminders of the good ol' days way back before September where a typical day on Wall Street was unexciting... Then the fed announcement at 2:15. The usual lurches up and down and then another surprising rally. Most times when the announcement is exactly as expected, there's a downturn, but no, not in this day and age... A rally of around 300 points... until 3:50pm and the bottom fell out.

Some are blaming a rumor or piece of a statement by the CEO of G.E. saying their revenues would be flat in 2009. Well that wasn't what caused it, it was simple massive selling by hedge funds and other firms.

Bottom line, the Dow ended the day down about 75 points. Not too bad if that's all you knew, but the 350 point drop in the final 10 minutes was quite impressive.

And say it with me... volume was average... yep, still not big buying going on even during the big rally after the Fed announcement. Everything is being inflated up and down by mediocre volume.

I think this tells us that the path of least resistence is still down.

Let's play a little game of "Do you remember?"

Do you remember that on Oct 13 the Dow rallied up 936 points?
Do you remember that on Oct 14 the Dow was down 76 points?
Do you remember that on Oct 15 the Dow was down 734 points?

Sound familiar?
Oct 28 Dow up 879
Oct 29 Dow down 74
Oct 30 Dow....???

History doesn't necessarily repeat itself, but it does rhyme. Could tomorrow or Friday be a big down day?

Where oh where is the real bottom? Will we find out in 2008 or in 2009 or possibly not until 2010?