Early in trading today we are seeing the stock market take a huge hit as news of China’s growth slowing along with a very low consumer confidence number has sent the indices lower to the tune of as much as 3%. The Dow is currently down 2.25% with the S&P 500 being down 2.56% and the NASDAQ plummeting over 3%.
The stock market has been for quite a ride over the last few months as there was a huge drop all the way down to the 200 day moving averages of most indices. At this point most indices grinded sideways to up finding support at the 200 day moving average. The NASDAQ is getting very close to the lows that were set at the beginning of June.
It will be very interesting to see where the market goes from here as this pullback has been quite unusual. The false recovery had many analysts believing that the stock market was cheap and there was great potential to buy some of the stocks that have taken a beating over the last month. Unfortunately, those same stocks are down to the tune of 3% to 5% today. Some investors may get weary and pull there money in these uncertain conditions.
Author: Thom Austin
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