actually 889, up to 9000. Second best day ever in absolute numbers. Expect more volatility in the band 7-9. The gyrations are enough to snap your neck.
I am following 3 threads: 1/ continuing housing slump, this is the one variable that drives much of it. Negative equity in real estate is a big source of the bad debt 2/ interbank lending? bank lending? saw reports that the White House is telling banks to lend, lend, lend, too bad no one listens to what monkey boy has to say anymore. 3/ the damage in the real economy. The theory that the crisis would be contained has been blown to pieces last spring, but what is the real tally. By all accounts the beast we are fighting weighs in the multi-trillion dollar damage range. Pretty big, but manageable.
Dow movements are just noise on top of a baseline. The baseline is depressed earnings (#3 taking hold) and the noise is violent money flows from the shadow system (hedge funds deleveraging) which will amplify any movement on thinly traded securities.
The 8000 floor seems to be holding well, so far.