Midday Market Check - A 100-Point Drop for the Dow Jones Industrial Average

Tags: DJIA
9 Jan 2:23am
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We head into the second half of the session with the Dow Jones Industrial Average (DJIA) showing a 100-point loss. We have seen a couple of bounce attempts but each has been met with ample selling pressure to keep the market below the breakeven mark. Overall though, the losses are still light as the S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) lose less than 1%.

The sector action is somewhat mixed. In general there is a downside bias but most losses are contained and a few groups are holding near unchanged. The US Oil Fund (USO), which lost over 10% yesterday, is once again lower. However, energy stocks are mixed as the PowerShares Clean Energy ETF (PBW) and Oil & Gas Index (XOI) actually show gains. The Amex Gold Bugs Index (HUI), one of Wednesday's weakest areas, is the strongest here as it recoups nearly half of yesterday's drop.


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.