US markets extend losses.

Not even today's Bernanke's and Bush's call for stimulus package are helping markets stop losses. Broad indices are approaching bottoms created on March 2007 after China sell-off. Technical chart shows us that Nasdaq Composite is really close to that bottom which is on 2331 points. Negative sentiment is fuelled after Merrill Lynch (MER) revealed write down by almost 10 billion USD. Only during last year shares lost 42%. Let's see FED action during next meeting which takes place on 30. January or maybe earlier if there is emergency meeting. My expectation is 50 bp cut.

Lately we are hearing many statistics which are beaten. Let me add that now it is forth consecutive week when markets are in red. Last time it happened on April 2005 but drop was much lower.