"There was more distress out of Europe today, coupled with a
dose of uncertainty due to JPMorgan's (
) 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
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
- Now that the iShares Russell 2000 Index Fund (
) dipped below key technical support,
- 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
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
) led the underperformers with a 3.2% drop. Cisco (
) and Merck (
) settled up 1.2% and 0.5%, respectively. Kraft Foods (
) remained unchanged.
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.
CBOE Market Volatility Index (VIX - 21.87)
surged roughly 10% to climb back above the 20 level. The VIX
settled squarely at its session peak of 21.81, and marked its
highest daily close since Jan. 17.
: "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
For today's notable annual highs and lows,
At the end of every market day, the staff at Schaeffer's
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