GRIZZLIES HUG THE DOWFears that Europe’s debt troubles will infect the global economy and gloomy U.S. labor data crippled Wall Street on Thursday, fueling the worst point drop for stocks in more than nine months and briefly pushing the Dow back to four-digit territory. Renewed worries that Portugal, Greece or Spain could default on their debts came a day before the all-important monthly jobs report and sent the Dow below the crucial 10000 level for the first time since early November 09.
When the dust settled, DJIA was barely clinging to its perch above the 10,000 level. The drop more than erases the gains picked up on Monday and Tuesday and leaves the average now showing a slight loss on the week.
The Dow Jones Industrial Average fell 268.37 points, or 2.61%, to 10002.18. The blue-chip barometer tanked as all but one of its 30 components succumbed to heavy selling pressure. Not only did the Dow notch its lowest close of 2010, it's also in danger of notching another weekly breach of its 20-week moving average.The Standard & Poor's 500 endured an even more dramatic percentage loss, shedding 34.17 points, or 3.11%, to 1063.11 ended at its lowest level since Nov. 4, 2009, and is also staring up at its formerly supportive 20-week trendline.
Last but not least, the Nasdaq Composite lost 65.48 points, or 2.99%, to 2125.43 >>> backing away from its recently resistant 10-day moving average. Today marks the COMP's lowest year-to-date closing price.All indexes across the board are near recent lows and majority closed below what should have been support. It probably goes without saying, but none of this would be considered a good technical sign. And, as said earlier, this is not the type of action ZL was expecting. This really surprised yours truly. My optimism is beginning to quiver ........
CAVEAT EMPTOR
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