R.C. Market Report 2.12

• Today: Market continued to decline as anticipated for much of the day. However, report on obama's housing plan sparked a rally in the final hour to offset all of the losses.

• Tomorrow: As we reached new lows of the day with little more than an hour left to go, I thought the market may rally early tomorrow. Because in four days, Dow had dropped 700 pts and it was due for a retracement. However, I did not imagine that we'd have an immediate 250pt reversal. I hate to give this newsbreak too much credit because 1) it was a report out of reuter's, not an official report from the gov. and 2) technically, market was extended to the downside. So looking forward, I think the effect of this rally will keep the market afloat for the early half of tomorrow, but I expect sellers to return in the second half. Unfortunately, it looks as though bulk of the move to the top has already occurred and with Obama scheduled to sign stimulus plan on Sat., sellers may not trade aggressively heading into a long weekend either.