Friday's session ended with a discussion of how the Dow Jones Industrial Average (DJIA) had rallied back to challenge resistance. Today we see a 240-point drop in the DJIA, as the broad market indices all lost around 2%.
Earlier we saw widespread selling and that held into the close. The iShares Treasury Bond (TLT) and US Oil Fund (USO) were the only two groups from my list to show a gain. The SPDR Homebuilders (XHB) was hardest hit while the Regional Bank HOLDRS (RKH) and Broker/Dealer Index (XBD) were also relatively weak.
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
1266.8 |
-25.4 points |
-1.96 percent |
| Dow Jones Industrial Average (DJIA) |
11386.3 |
-242 points |
-2.08 percent |
| Nasdaq Composite (COMP) |
2365.6 |
-49.1 points |
-2.03 percent |
| Russell 2000 (RUT) |
720.5 |
-17.1 points |
-2.31 percent |
| CBOE Market Volatility Index (VIX) |
20.97 |
2.16 points |
11.5 percent |
In terms of the S&P 500 (SPX) and Dow Jones Industrial Average, today's selling doesn't "break" the daily charts, but it does leave that door open. The SPX is once again precariously perched on support while the DJIA is showing the early (potential) stages of rejection. And that is where I will pick up in the morning. Have a nice evening...
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
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