Investors Now Lost Between Fears Of A Resumption Of The Bear Market Downtrend And Hopes For Green Shoots

The highlights Thursday were weakness in the dollar and feeble bounce in gold currently more attached to oil; Alcoa’s (AA) failure to hold Wednesday’s gains; news that Goldman Sachs (GS) will exceed its record 2007 earnings; a comeback of sorts for banks and materials stocks; and more second round stimulus trial balloons aloft.

Volume was ultra light but breadth improved enough to move stocks from their short-term oversold conditions.

Meanwhile, the trusty McClellan Oscillator continues to fall reinforcing the notion that the top is in for stocks.

This is all we have time for today. It seems clear that investors are now lost between fears of a resumption of the bear market downtrend and hopes for green shoots. Earnings should prove inspiring to one side or the other.

I’ll be back with a more detailed report tomorrow.

Disclaimer: Among other issues the ETF Digest maintains positions in: GLD and USL.

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