Posted on 08/21/2015 1:18:44 PM PDT by SkyPilot
U.S. stocks closed deep in the red on Friday as global growth concerns accelerated selling pressure to push the Dow into correction territory.
The Dow Jones industrial average closed at session lows, off 531 points and in correction territory for the first time since 2011 as all blue chips declined. The last time the index closed more than 500 points lower was on Aug. 10, 2011. In the last five years, the index has only had four instances with closing losses of more than 400 points.
"For investors the momentum and the drive of the market is now lower (than) it used to be because there's no place to hide," said Lance Roberts, general partner at STA Wealth Management. "Every time we hit the major technical points we kept selling."
A traders noted that investors stopped looking at techincals and were plowing through them.
"It's an expiration day and it looks like they're to have for sale on the close maybe as much as a billion dollars," said Art Cashin, director of floor trading for UBS.
(Excerpt) Read more at cnbc.com ...
EXACTLY!!!
If the 50 day smoothed moving average breaks below the 200 sma you may start hearing “crash” get tossed around.
Generally anything up to a 20% drop gets labeled a correction.
“And that is the results with the Treasury pumping 40% of the money into the stock market.”
How do you think it does that? The Treasury sells bonds. You have it buying stocks.
You said...
“There is no price discovery because of Fed manipulation. No price discovery, no free market”
But eventually the free market wins. And be it in commodities or stocks or whatever, eventually the hand of the market bitch slaps the manipulators.
What we will go through will hurt, but the opportunity to change the course we are on is better than any other time provided there’s no “too big too fails.”
Downturns and crashes don’t scare me as much as what politicians and central banks do in response to them
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