This morning it looked like a stronger U.S. dollar was going to put the bears in charge but the euro came back despite a Fitch downgrade of Greece and that brought in the buyers. The euro faded again and the dollar strengthened in the final hour of trading and turned us back down. Gold led and retailers and banks were particularly weak. We had a pretty good rebound Wednesday and Thursday, but it ran out of steam and market players are a little nervous that we may finally see a failed bounce as puts were elevated and sentiment figures took a dip. We are not far from testing the recent lows looking at the after hour action, but if the Euro zone problems stayed contained this weekend (see Friday fun post), bulls will probably give another try next week.
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