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Wednesday, June 23, 2010

DJIA Swallows 1.43% Loss in Another Late-Session Selling Spree

After a two-week vacation, bearish sentiment and risk aversion made a big return to Wall Street on Tuesday as the Dow dropped 149 points amid fears about a double-dip in the housing market and a wave of selling in the energy space.
After two weeks of bullishness, negative sentiment has returned this week, with a triple-digit rally evaporating on Monday and the S&P 500 sinking below the closely-watched 1100 mark on Tuesday.

After briefly exploring positive territory in early trading, the Dow Jones Industrial Average (DJIA – 10,293.52) cascaded into the close, swallowing a loss of 148.89 points, or 1.4%. Only pharmaceutical issues Johnson & Johnson (JNJ) and Merck (MRK) finished in the black, with Alcoa (AA) and Caterpillar (CAT) pacing the 28 declining blue chips. However, while the Dow surrendered its perch atop the 10,400 level, the index's losses were contained by its 10-day moving average.
The S&P 500 Index (SPX – 1,095.31) gave up 17.9 points, or 1.6%, surrendering its foothold atop the psychologically critical 1,100 level, as well as its own 10-day trendline.
Meanwhile, the Nasdaq Composite (COMP – 2,261.80) ended on a deficit of 27.3 points, or 1.2%, as even Apple Inc.'s (AAPL) solid iPad sales couldn't keep the tech-rich index afloat. What's more, similar to the SPX, the COMP finished the session south of its 10-day moving average for the first time since June 10.


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