Another REALLY volatile day on Wall Street shows huge price swings are still the rule.
In truly ugly early afternoon trade, both the Nasdaq and the S&P 500 dove below 2008 lows set on Oct. 10. (For the S&P, 839 was the technical level that set off today's selling).The Dow didn't break its technical floor of 7882.51, but did tick below 8000 before rebounding.
So what to make of the mid-day dip? First, selling came care of ongoing weakness in the economy including jobless claims hitting highs not seen since the 2001 recession. The banking sector is continuing a grinding, week-long sell-off. Citigroup is off another 8 percent today on questions over the future of its leadership. Second, the fact that shares rebounded after testing those lows could be taken as a sign that the market is attempting to form a bottom. The bad news is it'll likely test those levels a few more times given ongoing uncertainty that still remains in housing and credit markets, especially as traders continue to adjust to the news that the government won't be buying up all that toxic debt.
Clarity is lacking.