Stocks fell sharply in late afternoon trading Monday adding to last week’s big losses as volatility continues to rule Wall Street.
The Dow Jones industrial average fell 223.03 points, or 1.4%, to close at 16,321.07. It was the Dow’s fifth straight day of triple digit moves and only one of them have been in a positive direction. The blue chip index is at its lowest close since April 15 after suffering its worst three-day sell-off since early August 2011.
The Standard & Poor’s 500 index dropped 31.39 points, or 1.7%, to 1874.74. The tech-heavy Nasdaq composite index fell 62.58 points, or 1.5%, to 4213.66.
One reason for the late-day selloff is the fact that the S&P 500 failed to hold its long-term trend line, known as the 200-day moving average, which was 1905 heading into today’s trading action.
“We broke through the 200-day moving average on the S&P 500 and this is a market driven on technicals (or stock chart patterns),” says Axel Merk, chief investment officer at Merk Investments. “The 200-day moving average has always been hugely important.”
Source: USA Today |