Toni Hansen thinks that Monday's gains may extend even further into the early morning trade, but she is looking for a correction off resistance into the afternoon on Tuesday.
On Sunday, Bear Stearns made the shocking announcement that it was working on a buyout by J.P. Morgan Chase & Co. for a mere $2/share. The Fed stepped in to try to cushion the blow by cutting interest rates another 25 basis points just two days prior to an anticipated 75 basis point rate cut most had been expecting coming out of Tuesday's meeting.
After the initial reaction to the open wore off, the market was able to pick itself up extremely well on Thursday. A report by Standard & Poor fueled speculation that banks may be close to seeing an end in sight in terms of the current subprime meltdown.
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