Markets Tank As Technical Levels Loom
The markets are taking a beating today on the back of continued European default worries. In addition, the Super Committee in the United States has failed to agree on any budget cuts. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $114.62, -3.14 (-2.67%). While Europe continues to crumble, the United States government continues to squabble and be a total embarrassment to its citizens.
As the Thanksgiving holiday looms, the markets look for cheer. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $119.00, -2.99 (-2.45%). Without any sort of major news out of Europe or the United States, it is not likely they will find any reason to bounce. The only chance the markets have of bouncing would come if the SPY hits the $117.25 level. Should that level hit, technical support would be achieved. Other than that, it is unlikely any investors want to step up and buy the markets with so many market holidays. Market holidays make for more risk as traders must hold positions and cannot exit if they choose.