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Stock Trading Update US Markets Poised for Gap Down Before the Bell

Submitted by Mike Swanson on Wed, 2010-07-07 07:32.

The S&P 500 is currently are trading down -5.50 points while Nasdaq futures are down -8.30. Yesterday the stock market opened up with a hefty gap up and rallied a bit in the morning only to give up almost all of its gains by the close, causing some commentators to identify the action as a classic bear market trap.

In bear markets the market falls week by week, but has occasional gap ups and short-term rallies that suck people into it that are desperate to buy and try to make up their losses.

At some point the market will rally, but there are no signs of any real bear market bottom.

Overnight the Asian markets got hit and European markets are down right now.

Tomorrow the European Central Bank meets. European investors do not expect the bank to make any changes in interest rates, but it will release stress tests on banks that are part of the European Union. There is some worry about that, but they shouldn’t worry too much. When the US Treasury created stress tests a few years ago it pretty much just made up numbers for public consumption and kept most of the data secret.

Hopefully today the market will turn around. Bulls need some relief.

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