Equity indexes in general and the Dow Jones Industrial Average in particular have had a pretty smooth ride higher since July 2006. The DJIA has rallied more than 2,000 points since mid July without a single correction of any consequence.
That streak was abruptly ended Tuesday as the Dow dropped more than 100 point on the open and than extended its losses in the afternoon, dropping nearly 200 points in a one minute span ending at 2:00 p.m. CST.
Many analysts have blamed the plunge on tighter credit requirements in China as Shanghai's benchmark stock index plunged nearly 9% on Tuesday, prior to the open of U.S. markets.
Also contributing to the sell off was a worse than expected drop in the durable goods report, 7.8%, for January.
