The US dollar is still near like 15-year highs. Other currencies are weak, and people have been waiting for the elusive Yen and Argentinian pesos to devaluate. On the other hand, the Fed has been out pumping the stock market with liquidity and interest rate cuts. Traders remark that they've never seen the Fed this active. But it doesn't work.
Stocks keep falling no matter how many cuts one tries.
I think as of tonight, we are below the index levels of Greenspan's surprise 50 basis point cut. I still think the Dow will fail. The stock market is being infused with money and it won't go up, and there is no way the market can absorb the shock of companies being created and destroyed overnight, along with their stocks, an effect which touches upon employment levels, real estate, and management psychology. Okay, so positive signs for the economy and tech. The semiconductors have taken a lot of beating, with constant estimate reductions and cutbacks, yet the SOX is still sitting at the same levels.