The Dow Jones Industrial Average Plunges 275 Points in Early Trading

Tags: DJIA
14 Jan 11:42pm
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We are only an hour into the day but find the Dow Jones Industrial Average (DJIA) already posting a sizable loss as it drops over 275 points. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) are also weak with losses exceeding 3%.

The sector graph shows most sectors are under pressure here as well. The iShares Treasury Bond (TLT) is posting the only gain from my list. The rest of the pack is lower with losses starting at 1% and most exceeding 3%.

One point to note here is that the Dow Jones Industrial Average (DJIA) has now broken the short-term support discussed last night. This area, near 8400, now represents potential resistance on any rallies.


Chart Courtesy of Thomson Financial


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Schaeffer’s Investment Research, founded by Bernie Schaeffer in 1981, is a research-driven provider of investment research and recommendations featuring a unique, time-tested analysis of investor expectations. Schaeffer's contrarian approach, called Expectational Analysis®, focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription publication and it's website, www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's.