February 2013 Rally Fades As Dow Loses 216 Points:
Dow Jones Industrial Average Has Worst Day Of 2013.
The Dow Jones Industrial Average fell triple digits as investors lost their appetites for risk. The Dow fell 216 points to 13,784 and the selling got stronger towards the end of the day. We have been neutral for the past few weeks and we remain neutral until we see new support levels hold.
The TLT rallied near $120 which could be a sign traders are looking for safe havens again. Any continued strength in the 20-year bond ETF may be a sign that traders aren’t willing to go long in the short-run. The XLF, IWM, MDY exchange traded funds were all weak yesterday and cross low levels of resistance.
If downside risks continue based on economic data, the market could continue to test new ground. We are watching the yen and the euro carefully for clues on market momentum. Relative strength indicators for the major averages are lower than in the past few weeks.