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Dow Closes Under 10,000
Posted On Wednesday, May 26, 2010 at at 3:53 PM by Finance Fanatic
In the morning of today's trading, it was looking like markets were going to rebound a bit, after the selling start to the week. However, markets violently sold into close closing the Dow down 69 points, putting the index under 10,000 for the first time since February. Many analysts were expecting a good climb back at this point and today's selling close shows that investors are still very skeptical about economic pressures.
Stocks were hit a bit by the climbing dollar. The dollar outperformed the Euro today as problems continue to hit European markets. China announced that they will be reviewing their Euro-zone debt holdings due to the recent turmoil. This did not help the already struggling European economy.
Market movers will want to get this market above 10,000 asap, so I expect some strong upward pressure in the next couple of days. However, volume spiked today with the selling, putting trading levels far above the recent average. The volume that accompanies the selling is what makes me anxious and a bit nervous for upcoming performance.
ICSC came to a conclusion yesterday and I found much of the same results as I had the 2 days prior. Institutions are definitely on the hunt, looking for new opportunities, however, nothing really seems to make sense at this point. There are transactions being made, but they are few and far between. Longing the dollar and treasuries seem like a pretty good play at this point, as uncertainty is bound to increase. Watch out for the whip rebound. Happy Trading.
