A disappointing day as the Dow Jones Industrial Average (DJIA) drops over 420 points. My midday check of the action showed the Dow down over 200 points and sitting near its worst levels of the session. Most of the afternoon was a sideways meander at those levels. Then, with about 40 minutes to go, the bottom fell out and the market sold off until the bell rang.
The sector view is more or less a wall of losses. The iShares Treasury Bond (TLT) maintained its status as the sole advancer as it challenges its all-time closing high. The streetTRACKS Gold (GLD) was flat. From there the losses begin at 3% and run into double-digit territory. The Broker/Dealer Index (XBD), Regional Bank HOLDRS (RKH), PowerShares Clean Energy ETF (PBW), and SPDR Homebuilders (XHB) were among the weakest sectors.
What I view as the most significant aspect of today is illustrated in the daily charts of the broad market indices. With today's selloff, the S&P 500 (SPX), Nasdaq Composite (COMP) and Russell 2000 (RUT) are ticking below their recent lows. The Dow Jones Industrial Average (DJIA) didn't hit a new low but is knocking on that door. As I have been discussing, I view a breakdown as a warning sign. Much as the way that a consolidation amid an uptrend is a good sign, a breakdown here would suggest a continuation of the downtrend that has been in place since last October's peak. And that, unfortunately, is where I will pick up in the morning. Have a nice evening...
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
806.6 |
-52.5 points |
-6.12 percent |
| Dow Jones Industrial Average (DJIA) |
7997.3 |
-428 points |
-5.07 percent |
| Nasdaq Composite (COMP) |
1386.4 |
-96.8 points |
-6.53 percent |
| Russell 2000 (RUT) |
412.4 |
-35.1 points |
-7.85 percent |
| CBOE Market Volatility Index (VIX) |
74.26 |
6.62 points |
9.8 percent |
Charts Courtesy of Thomson Financial
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