From an inauspicious 11,444 close on Friday, the Dow Jones Industrial Average fell to 10,809 on Monday, bounced to 11,239 on Tuesday, and closed today at 10,719.94, down 500 points.
Having fallen 6.66 percent on Monday to 1,119, the S&P 500 bounced 4.74 percent on Tuesday and then fell 4.41 percent today, closing the day at 1,120.76.
∙ Comments: Numerology Nuts (And Everyone Else) Take Note [SocketSite]
As someone predicted on the earlier thread:
“on a side note: I doubt that this current drop will last more than a few more days. Govt will blink. it always does, partly because it wants to.”
…or perhaps not. Problems in Europe are real. US banks and MM funds are very much exposed. Fed swap lines are open, but that only goes so far. The US macro picture is ugly, and there ain’t much adult leadership on display.
Oh, but Gov. Perry is praying, so we’ve got that going for us.
Problems in Europe are some very real and other less real. It looks like markets are going at one country after another. First it was PIIGS, now the wolf pack is trying to reach the core with the rumour on SocGen and a French debt downgrade.
S&P stated a few days ago that pension reform was appropriate and the reason they were keeping them AAA with a higher debt to GDP than AA+ US – go figure.
About the SocGen crash look at who’s spreading the rumor. The Daily Mail is well known for its anti-EU stance and very conservative bias.
So far “Fortress Europe” is holding tight. The day this changes I’d make a run for the hills because this will spread across the pond and we don’t have much to cushion it.