Click here for the Weekly Wrap by Briefing.com.
BOTTOM LINE: Overall, last week's market performance was negative. Good news was ignored and any bad news punished US shares quickly. Rising interest rates and worries over the problems at General Motors, AIG, Citigroup and Fannie Mae continued to weigh heavily on investor psyche. Lower commodity prices, merger activity and a strengthening US dollar had little positive impact on trading. The Nasdaq is now trading right below the psychologically important 2000 level at its 200-day moving-average. Value stocks, specifically Cyclicals, bore the brunt of the selling, while defensive Consumer shares outperformed through week’s end. The advance/decline line fell on the week, volume was light and most sectors declined. Finally, measures of investor anxiety were mixed, which is a negative considering recent losses. However, the sharp decline in the AAII % Bulls is a big positive and bodes well for a meaningful bottom in the near future.
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