Earnings are coming in on the 'spotty' side with signs of weakness despite the ardent cheerleading from the talking heads and the financial 'journalists.'
The big tickle today was the 25 bp increase in interest rates by the Bank of China which the market was shrugging off. But in the afternoon Bloomberg disclosed a suit by some financial heavyweights including the Fed against Bank of America for dodgy loans originated by Countrywide Financial which BofA had acquired. There is some speculation that the relative outsider BofA will be 'Lehmanized.' Personally I would like to know who is holding their Credit Default Swaps and if the Goon Squad (GS) is among them.
Notice that no significant support was broken today in the stock indices so tomorrow will be quite important in setting the trend and tone.
