You know that you’re in a bear market when a Dow down 249 points actually feels good. Yes, actually after a 566 point drop in the Dow, either sellers just ran out of gas, or perhaps a few brave souls decided to buy something. After all, the early morning plunge sure did have the feel of some forced selling, meeting margin calls perhaps, or even a magic algorithm was unleashed on unsuspecting market participants. Whatever the case, it was quite an active day for traders. After the 566 point Dow drop, stocks fought their way back to just more than a 100 point drop, then drifted lower again in the last half hour of trading.
By the close, the Dow Jones Industrial Average was down 249 points to finish the day at 15,766. The S&P 500 was down 22 to close at 1859. Gold was up $11 to trade at $1100 per ounce, while oil was down $1.91 to trade at $26.76 per barrel WTI.
We danced around dangerous support levels in the S&P today (actually violated a couple), but lived to play another day. It appears that oil is going to zero and gasoline will soon be free. Will free gasoline help spark the economy? Anyway, remember that we are going to have a conference call to discuss all of this mess tomorrow morning at 8:15. Refer to the earlier email for dial in instructions. If you have any questions give Hunter or John a call.
Have a nice evening everyone.