Wednesday, January 21, 2009

Biggest Inauguration Day Drop For DJIA..

This morning The Dow Jones Industrial Average suffered its biggest Inauguration Day drop in its 112-year history Tuesday, falling 332 points or 4% to 7949.09 points, its lowest level since Nov. 20. Meanwhile, the S&P 500 lost 5.3%, and is now down 11% in the first 12 trading days of 2009; the Nasdaq shed 5.8%. Accordingly this is a disastrous for the global financial market.

Financial stocks tumbled 16.7% Tuesday, registering their worst single-session decline since a 17% drop Dec. 1. Ongoing weakness in the financial sector has rekindled pessimism in the broader market. People are worried about the banking system.

With this kind of selling activities and heavy volume created, we might enter another wave or another round of selling that would turn very bad. The 8,000 point strong level that should poised as a support also has been broken. After this Inauguration Day, the 44th U.S. President will face one of the toughest financial crisis in all decades.

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