Interest Rates and The Stock Market

A few thoughts:

Stocks – Pretty certain we’re going to see a pullback

On the Nasdaq Comp to the low to mid 1600’s, between

Now and say, mid to end of October.

5 month rally and  2 to 2 ½ month pullback. It should

Generate plenty of fear…Then a nice rally into Q1 of ’10,

With Nasdaq going to a new recovery high above

the Aug 12 high at 2015.26. After that, ultimately it could get

even uglier than March of ’09.

Interest Rates: with the stock selloff, we should see lower rates…

However, what I’m seeing is that interest rates are struggling to

Go down. Yes, rates declined today, but not as easily as they

Should have, given the big drop in stocks. The 10 Yr broke, and closed,

Below 3.50%, so we could see 3.300% soon. Fingers crossed.

Momentum is not oversold yet (42.70 on Rsi), good sign.

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