Daily Investment Interpretations
May 28, 2010
After yo-yoing up and down wildly all day, the markets ended down a bit
more than 1%.
The NASDAQ Composite gave up 20.64 points (-0.91%) to 2,257.04, the Dow slumped 122.36 points (-1.19%) to close at 10,136.63, and the S&P 500 sagged 13.65 points (-1.24%) to end at 1,089.41. Oil was basically unchanged, closing at $74.09 a barrel, while Gold ended at $1,216. The VIX rose 2.39 to 32.07.
The cause of this downdraft seems to have been the downgrading of Spanish creditworthiness from AAA to AA: Spanish cut.
Mark Hulbert warns about how overpriced Apple stock is: Apple vs. Microsoft.
My Investment advisory service suggests that this market may retest 1,070 on the S&P 500. Today's action occurred when most traders were off on a long weekend.
There are a couple of pundits arguing that a significant rally may lie ahead from here (although my investment advisory service notes that the intermediate trend is now down, and is playing for a short-term trade): Correction begets what?, and Peter Cardillo expects 'powerful' rally (audio).