On Friday, the market dropped 125 points to 11,018 (Dow Jones Index) on news about Goldman Sachs.
The Securities and Exchange Commission's bombshell civil fraud charge against Goldman has tarnished the Wall Street bank's already bruised image, analysts say.
It could also hurt its ability to do business in an industry based largely on trust.
On the other hand, some investors believe that Goldman’s friends in Washington will bail them out.
The market has been going up for quite some time without retracing.
Now, the market is overbought.
The last time it retraced was around January 15th.
So, it appears that the market may correct for some days.
Yes, the overall trend is up, but it is safer to wait for a pullback.
Let us see how the market reacts to the Goldman Sachs case on Monday.
Tighten your stops if you are long in the market.
The market may go down.
