Market Breadth & Goldman, BlackRock, JPM trillion sizes

After the profit taking during the last week, we now have negative divergences at oversold levels while price actions are just starting to show a break of uptrend momentum as we can see that markets have closed below the intermediate rising wedge trend lines on most of major market indices.

Major Markets		Close	Change	% Chg		Date
$NYA	NYSE Composite	6,739.45	-215.86	-3.10%		2009-10-30, 16:00ET
$COMPQ	Nasdaq Composite	2,045.11	-52.44	-2.50%		2009-10-30, 16:00ET
$INDU	Dow Industrial	9,712.73	-249.85	-2.51%		2009-10-30, 16:00ET
$XAX	AMEX Composite	1,752.23	-19.01	-1.07%		2009-10-30, 16:00ET
$TRAN	Dow Transports	3,613.34	-90.31	-2.44%		2009-10-30, 16:00ET
$UTIL	Dow Utilities	363.04	-6.89	-1.86%		2009-10-30, 16:00ET

Major Indices		Close	Change	% Chg		Date
$SPX	S&P 500	1,036.19	-29.92	-2.81%		2009-10-30, 16:00ET
$RUT	Russell 2000	562.77	-17.45	-3.01%		2009-10-30, 16:00ET
$NDX	Nasdaq 100	1,667.13	-44.14	-2.58%		2009-10-30, 16:00ET
$OEX	S&P 100	482.31	-13.74	-2.77%		2009-10-30, 16:00ET
$SML	S&P Small Caps	299.07	-8.84	-2.87%		2009-10-30, 16:00ET
$MID	S&P Mid Caps	659.15	-19.08	-2.81%		2009-10-30, 16:00ET
$DJA	Dow Composite	3,256.05	-79.02	-2.37%		2009-10-30, 16:00ET
$RUI	Russell 1000	566.50	-16.37	-2.81%		2009-10-30, 16:00ET
$RUA	Russell 3000	603.26	-17.53	-2.82%		2009-10-30, 16:00ET
$VLE	Value Line	2,035.30	-64.40	-3.07%		2009-10-30, 13:15ET
$WLSH	Wilshire 5000	10,655.73	-309.83	-2.83%		2009-10-30, 16:00ET

Goldman, BlackRock, JPM.... trillion size firms while millions of Americans and the nation is going bankrupt. As previously noted, we have trillions bought the markets during the climactic sell-off in Nov2008 - March 2009. Even if we have 800 billions to trillion cash on the side line, when the early buyers exit markets, the profit taking will be huge as we have seen an early sign of profit taking during the last week with a rising volatility.

• Mr. Bernanke’s quote making this point in the NPR story (at the 45-second mark) is from his spoken remarks; the prepared speech does not contain any such language. And Mr. Bernanke is wise to be wary of endorsing the benefits of size in the banking sector — the evidence in this regard is shaky at best.
  
  Goldman ..... it had $217 billion in assets in 1998 (that’s $270 billion in today’s dollars); it now has around $1 trillion. Goldman was considered a strong global bank in the late 1990s. Can it really be the case that the ideal size for banks has risen so drastically over the past decade? (Lehman had $154 billion in assets in 1998 and above $600 billion when it failed).