This afternoon, the major stock indexes are still under severe selling pressure. The Dow Jones Industrial Average is trading lower by more than 440.00 points to 10,674.00. The one factor that is helping the stock indexes from declining lower is the quick drop in the U.S. Dollar Index.
The stock market continues its collapse today. The Federal Reserve did virtually nothing to alleviate the global slow down fears and the markets responded with massive downside. At this point, the Dow Jones Industrial Average has fallen over 600 points in the last two days. Today, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $113.05, -3.58 (-3.07%).
The markets are driving higher today on expectations of some major quantitative easing by the Federal Reserve. Tomorrow is the big day. Ben Bernanke and his fellow Federal Reserve cronies will release their policy statement. In his last few speeches, Ben Bernanke has eluded to more easing. Because of this, the markets have high expectations.
The stock market is dropping today after rumors surfaced of a possible Greek default as early as tomorrow. While this is just a rumor, the possibility remains high that it will happen in the future. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $119.51, -2.01 (-1.65%). While this drop seems sharp, it is likely it will not accelerate in the next day or two. Even a small up move could be possible.
Secrets: Europe Is Even Worse Than The Public Knows
The markets are trading on shaky ground today. The Lehman Brothers collapse anniversary is not without some fireworks. The big news of the day came from ECB. They decided to launch a three-month loans program in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank. This initially caused a solid market rally but may be short lived.
The markets are floating higher after a rocky start. After initially opening higher, the SPDR S&P 500 ETF (NYSE:SPY) inched into the $118.50 level. This level was resistance and coincided with a sell-off that took the SPY down almost a full two dollars. After holding a key support line, the combination of light volume and a European rally helped the markets move back towards theirs highs.
Once the U.S. Dollar Index futures (DX U1) traded higher this afternoon the major stock indexes sold off. The Dow Jones Industrial Average just reversed a 70.0 point rally and are now trading in negative territory. Should the U.S. Dollar Index decline and sell off again the major stock indexes could reverse and move right back up.
The stock market continues to hover on the downside but with minimal losses. Europe took a major blow today again as continued fears of default rattle the chains of stability. The September 6th low is holding today thus far at $114.50, on the SPDR S&P 500 ETF (NYSE:SPY). This is the major pivot point for the day.
This afternoon, the Federal Reserve Bank Chairman Ben Bernanke will give a speech to the Economic Club of Minneapolis. Many traders and investors are wondering if Chairman Bernanke will hint at another round of stimulus via more U.S. Treasury purchases or perhaps his latest concoction called Operation Twist.