Today the Dow Jones Industrial Average and S&P 500 set multi-year low closing prices. The Dow fell more than 300 points to close at 8,378.95; the S&P lost nearly 50 points to close at 866.
Despite strong intraday losses in each of the past two days, the indexes had managed to stage strong end-of-day rallies to settle above the Oct. 10 close of 8,451.19 for the Dow and 891 for the S&P 500.
Many analysts had pegged the Oct.10 selloff as a possible long-term market bottom and the late rallies of the last two days indicated that the Oct. 10 closing levels were technically significant. On Oct. 10, both indexes settled well above their intraday lows, but today’s failure to hold those closing levels could indicate that the low has not yet been set.
Chart courtesy of eSignal