The market opened flat for the day and then turned down with heavy volume emboldening the bears. At the one point, the Dow was down 72 points. However, by noon, the Dow had turned positive and the bulls had taken control. The turnaround rally was on light volume and indications are showing that it was on short covering in the financial stocks. The Dow has had it's strongest rally in 2.5 years and this is in the midst of a recession. GDP numbers released today show the economy is contracting.
However, market breadth was negative. On the New York Stock Exchange, losers beat winners eight to seven on volume of 1.16 billion shares. On the Nasdaq, decliners beat advancers by a narrow margin on volume of 2.16 billion shares.
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