Monday, June 7, 2010

Stocks Below "Flash Crash" Thursday

The Dow Jones Industrial Average ended down 115.48 points, or 1.2%, today, at a seven-month low of 9816.49. More important from, a technical standpoint, is that it is now below the lows of "Flash Crash" Thursday. May 6, when the market at one point was down by more than 1,000 points. This is a signal of the extreme lack of buying power in the market.

Normally, you would see some kind of bounce at such a level, that none occurred suggests that there is little buying power in this market to halt even more slides. With both the Federal Reserve and European Central Bank holding money supply extremely tight (despite media reports to the contrary), global weakness will most likely intensify.

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