Wall Street stocks plummet sending DJIA down over 500 points into correction territory
- The DJIA was ending off 508 points, or 2.1%, at 23,59.
- S&P 500 index declined by 2.1% at 2,545.
- Nasdaq Composite Index ended 157 points, or 2.3%, lower at 6,754, on a preliminary basis.
Stocks on Wall Street was declining due to concerns over economic growth on a global scale. At the same time, there were newswires indicated that with funding for parts of the federal government set to expire midnight Friday, the White House and Democrats remain in a standoff over funding for a border wall.
- Germany’s DAX 30 fell 0.86% to 10,772.20 −93.57 points
- FTSE reversing weekly 1% rise on Monday
Roughly 75% of the federal budget is funded through Sep 2019 but a shutdown will of course still cause considerable turmoil. Health-care stocks were under pressure after a Federal judge ruled that Obamacare unconstitutional.
Dow falls back into correction territory
The Dow, for one, is no back into correction territory, widely defined as a drop of at least 10% from a recent peak. Meanwhile, the 10-year Treasury note was yielding 2.86% and falling due to rising bond prices in a flight to safety. Elsewhere, there is a focus on the Fed:
- WH Adviser Navarro: Fed should not raise interest rates on Wednesday
- Support levels: 23452 23295 23114
- Resistance levels: 24000 24551 24775
Bears were entering fresh shorts on Monday although the close was someway higher than the session’s lows, casting some neutrality to the immediate outlook for the index. Nonetheless, technical indicators are negative, and bears can target S3 located at 23295 and 2018 lows at 23114. On the flip side, bulls need to get above the 23.6% Fibo located at 24775.