Stock Market Axis of Evil

FUNDAMENTAL ANALYSIS
Regional banks joined the "Stock market axis of evil" led by crude oil today as some analysts predict the close down of at least 150 banks within the next 18 months. Effort led by the Treasury Secretary to rescue Freddie Mac and Fannie Mae only gave investors an excellent opportunity to bail out of those stocks, causing even more sell off ahead of the uncertain inflation numbers (see economic calendar). When pessimism reins, all positive factors will be met only with massive sell offs as the last of the bulls take the opportunity to bail out. As long as oil keep rising and banks keep shaking, this turmoil will go on.

TECHNICAL ANALYSIS
The bear trend of the Dow continues with no sign of even a relief rally. What looked like a strong enough opening to spur the start of a relief rally was met only with massive profit taking. This will go on...