The retracement from the top last week has been deeper than I would like to see; however, volatility is extremely high with investors eagerly waiting to understand the details of the TARP program.  The market will not be moving higher in any significant way until the details are disclosed.  The market was wild today; the Dow Jones opened up 120 points and then went flat, then up 100, then down 170, up 40, and then down 170 again.  The market dumped into the close today, dropping 200 points in the last hour. 

Ugly close, but the bottom line is that the market is in limbo land right now.  The Low and the High from last week is going to keep this market in a trading range within those two levels until the market is ready to make a breakout.  It may take a couple days, to a couple weeks to resolve.  If you have been reading my posts, you know I believe that move will be higher.  If the market decides to retest the lows from last week, there is an extremely high probability that these lows will hold.  Remember, the volume that came in on that low was record volume.  It will take quite a bit of firepower to bust that low on a closing basis. 

After the bell today, Berkshire Hathaway announced that it was purchasing $5 Billion of preferred stock in Goldman Sachs and another $5b in warrants which would give them the option to purchase more shares in the future.  While I was watching the market close, I started to wonder why Goldman was rallying so strongly while the market took a dump.  Ah, gotta love these insiders.  News was leaked before the bell.  Goldman is currently trading at 134.75 in the aftermarket, up another 10 points.

From where I sit, nothing has changed, even after today's nasty move down.