Greece Prompts a 125-Point Slide for Dow; JPM Still Not Forgotten

By
A A A

"There was more distress out of Europe today, coupled with a dose of uncertainty due to JPMorgan's ( JPM ) big trade blunder," stated Schaeffer's Senior Equity Analyst Joe Bell. "Throw in the fact that the positive earnings season is coming to an end, and the market just hasn't had a lot to cheer about during the past couple weeks." Mirroring this drab news, the Dow Jones Industrial Average (DJI) took a big dive today, experiencing a drop of more than 159 points at its session low, and ending at its lowest point in more than three months.

Keep reading to see what else was on our radar today:

  • Now that the iShares Russell 2000 Index Fund ( IWM ) dipped below key technical support, what's next?
  • As Europe remains in the spotlight, here's how to trade the market's holding pattern .
  • Plus, is there a way to predict incidents like the JPM trading mess ?
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,695.35) retreated as far as 12,661.48 in morning trading, but was able to pare its losses slightly, ending down 125.3 points, or roughly 1%. Twenty-seven of its 30 blue chips suffered declines, as JPMorgan Chase ( JPM ) led the underperformers with a 3.2% drop. Cisco ( CSCO ) and Merck ( MRK ) settled up 1.2% and 0.5%, respectively. Kraft Foods ( KFT ) remained unchanged.

The S&P 500 Index (SPX - 1,338.35) lopped off 15 points, or 1.1%, by the closing bell. Meanwhile, the Nasdaq Composite (COMP - 2,902.58) endured a 31.2-point, or 1.1%, drop.

The CBOE Market Volatility Index (VIX - 21.87) surged roughly 10% to climb back above the 20 level. The VIX settled squarely at ita session peak of 21.81, and marked its highest daily close since Jan. 17.

Today's highlight : "There wasn't a whole lot to be happy about," said Bell. "Many short-term and intermediate term support levels for the SPX were broken, as the continued selling puts a lot of pressure on those trying to call a bottom. The 1,333 level would be an area that I would like to see hold by the end of the week," Bell continued. "Technically, this marks double the March 2009 low, and it's an area we would like to see emerge as support."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Oil futures prolonged last week's pullback and closed today at their lowest price since Dec. 19. Questions about global demand moved into focus as Greece's political turmoil pushed the country closer to losing its euro-zone membership, and as anxieties over a slowing Chinese economy hit the Street. Crude for June delivery fell $1.35, or 1.4%, to end at $94.78 a barrel.

Similarly, gold futures dipped today, as the malleable metal weakened in step with oil and stocks. As the U.S. dollar got a safe-haven boost, June-dated gold hacked off $23, or 1.5%, to settle at $1,561 an ounce -- its lowest closing price of 2012.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,695.35) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,338.35) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,902.58) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: CSCO , IWM , JPM , KFT , MRK

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

57,375,820
  • $16.20 ▼ 0.80%
46,357,695
  • $102.13 ▲ 1.23%
39,856,106
  • $3.59 ▲ 0.84%
36,749,915
  • $19.21 ▲ 5.38%
35,094,671
  • $74.63 ▼ 1.75%
25,538,058
  • $48.06 ▼ 0.23%
24,241,250
  • $38.18 ▲ 1.03%
22,422,839
  • $11.20 ▲ 3.70%
As of 8/27/2014, 04:02 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com