Anyone who called the bottom last week turns out to have been wrong. Depite some strength in the banking system, the broader market still sold off. Tech led the way down to new lows.
The Dow Jones Industrial Average declined 79.89 points, which might not have been a big deal two years ago. But this far down the path of the Bear, those points add up to 1.2% of the index, leaving us at 6547.05. That’s the lowest close since April 14, 1997.
Financial stocks jumped today. Bank of America gained 19%. Wells Fargo and US Bancorp jumped, each rallying 16%. General Electric rose for the second trading session in a row, climbing almost 5% today. Could it be that maybe financials really will be the leaders out of the bear market? Or is this just another trap for investors to get hammered by the markets again?