Dow Jones Industrial and S & P 500 are falling into the red abyss

Dow Jones Industrial Average and S & P 500 go into the red zone

In brief: Dow Jones Industrial Average and S & P 500 rose during trading in futures, but may drop significantly due to bad data.

Trading on the stock market scare Dow Jones mixed dynamics today. The set of statistics from Europe, Asia and America look rather grim for the Dow Jones Industrial Average. IHS Global Insight say about the loss of world leadership in the production of consumer goods from the U.S.. This statement will be a bad signal for the DJIA and S & P 500 today. Dow index starts trading at around 10,293.52 points. The Dow Jones Industrial Average ( DJIA ) was hammered for a 149-point loss yesterday, and the DJIA enters today trading below a 50% retracement of its 2010 high and low.

The position is precarious in that the Dow is hovering just above key support at the 10,290 area, home to prior resistance and its 10-day moving average, even as traders prepare for the Fed’s decision on U.S. monetary policy. Along the same lines, the S&P 500 Index ( SPX ) plunged below its widely watched 200-day moving average yesterday. This trendline is viewed by many market technicians as a bull/bear market line of demarcation. Heading into the open, futures on the DJIA and the SPX are trading about 41 points and 4.5 points above fair value, respectively. Finally, keep in mind that market headwinds could be significant in this post-expiration week environment, as traders reestablish hedges that expired last week. This activity could also increase volatility, as seen by the CBOE Market Volatility Index’s ( VIX ) continued rebound from support at its 200-day moving average.

Anrey Torbinski
2010-06-23 13:16, Economics.

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