I noted yesterday that the failure to rally appeared a little ominous.
Stresses in the European banking sector had worried of another Lehman like spike in LIBOR and a eurodollar squeeze had the markets off balance all night.
The US market went down on weak economic new in initial claims and company prospects, but the Philly Fed came out with a dramatic contraction, and that sent equities tumbling and Treasuries soaring.
There was a pronounced flight to safety in the dollar and especially gold.
Tomorrow is option expiration, so the real market action will show up after the opening trades. Keep your eye on support levels.
