R.C. Market Report 10.03

• Market Trend: Downtrend

• The House passed the bill as most anticipated. But the traders didn't know whether the voting that they were watching was for this bill until it was nearly over. As poorly as that was carried out, the market performed even more poorly after the voting concluded. It didn't matter that President Bush came out to congratulate Paulson and released a photo of him signing the bill right away. The market listens to know one and it wasn't a surprise to see it act opposite of most people's expectations. The trend is to the downside, and as I've stated in yesterday's market report, the bulls had a chance to make a stand today. Well, they failed. There's seemingly one more hope for a bear market rally if the Fed announces an emergency fed rate cut early next week, most likely on Monday if they do. But even that's not going to solve the credit crisis. Market is also approaching some critical technical support levels on a multiyear level. But there's no reason to bottom pick this market. Just take what the market gives you and only play long after a clear confirmation of a reversal. Monday will be crucial as Asian markets will surely fall and Fed may be forced to act if we look to have another horrific Monday.