Yesterday's trading saw nearly the largest Dow point reversal since the depths of the financial crisis. In early trading the Industrials were up 282 points before sliding to a session low, down 142 points. As the session came to an end, the index rebounded to close down just 27 points. A casual end-of-day look at the day's price action would not reveal the strong currents beneath the surface.
The turbulence continued today with the Industrials down nearly 350 points midday. Major averages are approaching some key support levels, we'll discuss those first before moving on to interesting developments in global bond markets.
Here is a look at the S&P 500. The index has support near 2010, 2000, and 1975. Today's action crossed the 2000 mark in trading but the index has since recovered, suggesting the downward momentum may be abating.
The setup in the Industrials is similar with support near 17,370, 17,280, and 17,070. ... Log in or subscribe to continue reading.