And The Rally Has Disappeared

An two per cent early rally for the DOW mostly faded by noon, and the NASDAQ dipped into the red.

Bank of America is down 12% from a high open and 6% from Friday’s close, following news that the NY AG is still protesting a settlement despite pressure from the Obama administration.

European markets also dropped sharply from the highs in late trading. The FTSE was up around 3% before closing up 1%.

Bulls were counting on progress in Libya and rumours about QE3 to reverse four weeks of declines.