Dow Jones Industrial Average: -154.55 or 1.48% at 10309.85
S&P 500 Index: -19.13 or 1.72% at 1091.50
NASDAQ Composite Index: -37.61 or 1.73% at 2138.44
NYSE Internals: 430 Advance. 2527 Decline.
Markets drop after Dubai default problems.
Very surprising day. Not many people expected today to be down because of the holidays. The US markets were closed yesterday, but the index futures were open for most of the day and night. Our futures sold off throughout the evening, along with Asia and Europe. The Heng-Seng Index(Hong Kong) lost over 1000 points, nearly 5%. The Japanese Nikkei and Shangai Composite(China) were also down big. Europe was down on Thursday, but closed flat to slightly up today. I believe China lost 10% this week.
A lot of this selling has to do with the defaulting problems in Dubai. It seemed to have a big impact on the futures overnight here in the US. At one point, the E-mini S&P futures were down 41 points, and the Dow-mini YM were down nearly 380. But they soon recovered once the cash markets opened.
At the open today, market breadth was down 2000:1. Yes. 2000:1. We never even had that bearish of an open during the crash last year. My charts don't go back any farther than the past 3 years for market breadth, but this may have been one of the most bearish opens in the history of the stock market. The only other bearish open I can think of is Black Monday and Black Tuesday... Might as well add Black Friday to that list now too. :) We also had the TRIN open at 85.8. There was a lot of short interest in the morning.
But now this bounce off the lows has it's own impulsive look. While the sell off may have been impulsive, it is very tough to count 5 waves down. Looks more like 3 waves down, which is corrective. But the bounce up appears to be 5 waves. Should we continue higher, we have to watch the 1113 area. But if we can break back down below 1083, we may be headed to 1060. If 1113 is broken, 1122 it is.
I try and will post more charts over the weekend.
US Dollar was closed up slightly, despite being up big during the pre-market. Crude sold off, but recovered at the end, as did Gold. VIX was up over 25% itra-day, but quickly faded as the market rallied. Energy and materials led to the downside along with the Financials.
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