Despite Fed Plan, Financials Continue To Weigh On The Market

The market is under more selling pressure in early trading, led by a decline in the financials.

The brokers are weak, even though Lehman (LEH) beat earnings expectations. But they did take some big write-downs, and were not able to say whether they are ready to call a bottom or not. So the fear of more write-downs continues.

Costco (COST) also reported earnings, and investors were not impressed. The stock gapped lower, dragging down other retail stocks, although it is trying to bounce as I write.

And Biogen (BIIB) is off nearly -30% after the company said that it has not been able find a buyer after months of exploring a potential sale.

Asian markets were down overnight after the negative reaction to the Fed's liquidity plan. But the dollar continues to trade well, and the 10-year yield is up nicely back to 4.12%. Oil is down after a sharp spike yesterday, trading below $93, and gold is also lower.

As far as investor sentiment, bearishness is spiking again, with the put/call ratio high at 1.19 and the ISEE depressed at 98; the ARMS Index is above 1.40, and the VIX is spiking +5.25% today. So let's see if the market can find some support here.