Bank of America reversed off lows after six consecutive days of selling to close up 3% on the day. The market took this cue and rallied along with it as rumors that the government may ease mark-to-market rules for major banks swirled around the Street. The Dow reversed an 111-point fall rallying 260 points before falling back slightly to close up 106 points. General Electric continues to be a drag on the market closing lower for the sixth day in a row. But, strength from Goldman Sachs and Morgan Stanley led financials higher as they talked about paying back the TARP money within the year. Also, impressive earnings reports from Mastercard and Visa gave a nice boost to shares. Mastercard and Visa both beat estimates closing up 13% and 9%, respectively.
Today was a glimmer of hope for the bulls but the market still awaits the bank news from Congress. The market has room to the upside to 8,400 and can reclaim its 50-day moving average at 8,470. It remains the time to take trades and not look for follow-through.
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