October 29, 2008
October 29, 2008 by admin
Following one of the largest rallies in recorded history, today the Fed lowered the fed funds rate down to one percent. The stock market which has dropped over thirty percent in the past six months appears to be closing in on a bottom. Most traders believe the market is now in a trading range between 8000 & 9000 and that the bottom and top of this market is 7800 and 9500, if the top or bottom of this market is breached then the markets could move agressively.
The change in the Fed Funds rate was expected by most economists and a good sign that the Fed is working to help to restore confidence into the market and help to slow down the recessionary fears. Mortgage rates have been trending up and are still above six percent on most fixed rate loan programs. The stock market is likely to continue to be volatile and could have a large move next week following the election.