American Morning

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March 11th, 2009
12:00 PM ET

Minding Your Business

What a rally! From a 12-year low to the best surge of the year for stocks Tuesday. But what happens next? We looked at the charts and found five rallies this year before Tuesday of 200 points or more. Each time, the Dow fell the next day. Two of those times, falling by triple digits. What that tells us, is this market has had a hard time holding onto those gains.

But some chart-watchers say the selling has been so relentless over the past three weeks, the market is ready for a true “bear-market rally.” But make no mistake: any true recovery in stocks doesn’t happen until the banking system gets fixed, confidence returns and lending frees up. We are not there yet.

Filed under: Economy • Minding Your Business
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