Dow 10,000!!
We’ve hit the milestone again. The Dow Jones
Industrial Average has not traded into four-digit territory since last
April. As I’ve pointed out periodically in this space, it can reap dividends
to check out the Futures Indicators Page at TradingMarkets.com for clues
about likely stock market action.
Other broad market measures are down sharply in
end-of-summer light-volume trading, which makes the market susceptible to
large moves.
The Dow is down 151 at 9,939 after touching down to a
low of 9,901. The Nasdaq is down 52.24 at 1790.24, and the S&P 500 is
off 17.75 at 1130.83.
Technology is setting the downside pace for the selloff in blue chips. Microsoft
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PowerRating), had news last night that its
antitrust case in the US would be put on fast track. But news from overseas
that the European Union is broadening its investigation of antitrust
violations by the software giant is hitting the stock today and having a
widespread impact on the market. Microsoft, which accounts for 10% of the
weighting on the Nasdaq, is down 5%, or 3.00, at 27.26.
IBM
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failed to close above its 20-day moving average the past two sessions, a
sign of weakness. Big blue is down 4.45 at 99.69 and trading into the gap
left back on April 18.
Make sure to check out the Futures Indicators Page
for clues about the broad market averages. The futures contracts are based
on the underlying cash markets and are kept closely aligned through
arbitrage. Last night, both the S&P 500 futures
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Dow futures
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PowerRating) registered on TradingMarkets proprietary Implosion-5 List,
signaling downside momentum in stock index futures.
Another set of indicators from the Futures Indicators
Page gave a clue about potential weakness in the indexes. The Market
Bias Indicators Page is a collection of proprietary tools that, when taken
together, can provide a sign of market strength or weakness. For both
Tuesday and Wednesday, there were three signals pointing down, tipping you
off to the decline this week.