It's deja vu all over again for the Broker/Dealer index, with the index sliding below its 200 day moving average once again. The last time this happened, the XBD staged a strong rebound the following session. Notice on the chart that 225 has been key support. I may take half the LEH put position off the table if 225 is a rebound point today. If the 225 area fails, I am going to stay in. Lehman posts earnings tomorrow. Earnings of $1.95 are expected on revenue of $4.94 bln. Can LEH post even bigger blowout results than GS? Where's my Elmo laughter sound effect?
In more ominous fashion, the Philly Bank index is in freefall today:So in many respects, the technical damage today is more severe than last Monday.