SADDAM RALLY FADES -- EARLY OPENINGS REVERSE DIRECTION IN SEVERAL MARKETS

John Murphy
by John Murphy,
Chief Technical Analyst, StockCharts.com

STOCKS SUFFER REVERSAL DAY... Two things happened today. Neither one was a big surprise. Stocks opened higher on news of Saddam Hussein's capture over the weekend. By day's end, the initial euphoria had faded. In fact, stock averages suffered downside reversal days on relatively heavy volume. Blue chip stocks suffered the least damage. The Dow lost only 19 points (-.19%); the NYSE Index lost -.39%. By contrast, the Nasdaq lost a much larger -1.5%. Small stocks fell more than large stocks. The Russell 2000 fell -2.25%. All in all, a very disappointing day. Stocks weren't the only markets that changed direction. The dollar opened higher and closed lower. Crude oil opened lower and closed higher. Gold opened much lower and ended with a small loss of 20 cents. Gold stocks closed higher. News events like this usually don't have much staying power. This one didn't even last for a full trading day.

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John Murphy
About The Author:

John is a renowned author in the investment field and former technical analyst for CNBC. Considered the father of intermarket technical analysis, his books include “Technical Analysis of the Financial Markets” and “Trading with Intermarket Analysis”. Learn More 

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