Wednesday, March 16, 2011
Stocks in Free-fall
The Dow is down 280 and accelerating to the downside. Japan, the Middle East, and even Europe with Portugal's downgrade, are all contributing. We have violated several key support levels for stocks on a technical basis. Last year, the 1,250 level on the S&P was a strong resistance level, and once we pushed up through it, stocks drove quite a bit higher. Now we are right at that 1,250 level, so it will be interesting to see if we drive down through it. If that happens, we could see another 100 points plus come off of the S&P 500.