Fear Winning Out Over Greed
July 02, 2010 at 16:34 PM EDT
The two dominant emotions of any market are fear and greed. This week greed seems to have gone on summer vacation while fear has taken up residence. After managing to hold its ground above the 10,000 level for the last three weeks, the Dow closed below that psychological level yesterday. Today, the decline continued and we reached the next line of support near 9800. If that support fails, we could see a significant leg down. The S&P 500 finds itself in a similar condition, closing at a new low for the year and the past eight months. Despite fighting for survival, the indexes are closer to capitulation than to climbing. Fear is also showing up in the bond markets. Interest rates for the 10-Year Treasury Notes closed at 2.97 percent…