Markets Drop Sharply, Dollar Spikes
The markets are having a rare late morning, pre lunch drop, as the Dollar has spiked higher. The trading day started much like all the rest. A small gap lower and a float back to the flat line on light volume. However, once the flat line was achieved, the markets started to drop at 11am ET. Currently, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $131.93, -0.64.
There were signals throughout the morning session that told of a possible drop. First, two of the main leaders were significantly lower. Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) were down sharply even when the markets rallied back to the flat line. These two stocks have lead this market up and one must assume, they will lead the market down. In addition, the leading financial stocks like Goldman Sachs Group, Inc. (NYSE:GS) and JPMorgan Chase & Co. (NYSE:JPM) were also down all morning, never rallying to the flat line either. This should set bells ringing to Wall Street.
While the markets are lower today, the bigger question will be whether or not they can rally back by the close of trading? This is the usual move in the markets for any losses during the day. A late day buy program usually saves the day. Will it occur? If it does not occur, this may be a sign of further declines to come.