A day after the latest faint hope was thrown to the banking sector the market collapsed again. And it was the banks that led the decline. The major indices appear to be falling back from their 30 day moving averages, and the next move to break equities out of their current trading range is coming shortly. If XOM’s earnings report causes a full on sale in the energy sector and if the GDP number comes in weaker than expected another large drop in the market is likely.
And if 8,000 on the DOW and 800 on the S&P are broken, the November lows are the market’s last chance to avoid the next 20% drop.
