Dow Index under sell-down again!

Another series of announcements that pointed to continuing problems in the credit markets, the result of home loan debt going bad under the weight of a faltering housing market seems to haunt the financial market.

1) Citigroup Inc. warned it is looking to cut costs -- raising the possibility of further job cuts.

2) HSBC Holdings PLC said it plans to bail out two funds it manages.

3) The New York Federal Reserve, acknowledging "heightened pressures" in money markets that are expected to last through the rest of the year.

4)Financial companies fell after Goldman Sachs Group Inc. said HSBC Holdings Plc (HBC:US) faces $12 billion in additional writedowns for subprime defaults.

5)The reduced 2008 growth outlook stemmed from ``tightened terms and reduced availability of subprime and jumbo mortgages, weaker-than-expected housing data, and rising oil prices,'' the Fed said in its Summary of Economic Projections.

6)Calls for more transparency at Citigroup Inc.Citi has committed $10 billion in liquidity to the seven structured investment vehicles it manages on an "arm's length" basis, and has kept them off its balance sheet -- meaning Citi has not been counting the SIVs' debt as its own.


Tracking the Dow on Monday 26/11/07
The overnight bullish spillover lasted for half an hour before it got crushed further.There were intermittent bargain hunting with many distinct Doji Stars formation---a sign of indecision.The Dow seems to be held at ransom by some financial juggernauts dictating their terms based on news of fear.Towards the closing bell,the grizzly bears growled ferociously at the bulls ending near the day's low.The candlestick at the close is a Dragonfly Doji and pairing both together,it's known as Hammer .Hammering-out a bottom downtrend.A rebound is in place.

Looks like an alternate game of play.So will Tuesday be a bull-play for short-covering.The Fed said it will provide more than the usual year-end liquidity and that it is lifting the limits on how much can be lent to any one bank.Will this lift-up the stocks again?
The Fed said it would offer on November 28 about $8 billion through a repurchase agreement due to mature on January 10, 2008, and that it would conduct more term repurchase agreements extending into the new year.
A term repurchase agreement is a Fed loan to banks of more than one trading day