The Dow dropped 162 points today as global markets sold off once again on macro uncertainty.
Fundamentals
Investors sold off globally today as results coming out of the Euro summit over the weekend failed to please investors in a big way. Investors rushed back for the safety of bonds, depressing bond yields significantly. Traders also rushed back for put options for the first time in weeks, taking total equities put call ratio above par in favor of put options trading. Indeed, worry in the Eurozone is once again taking over the market with the fading memory of much better than expected US economic data released in the first week. Once again, the market is going to ebb and flow with news from the Eurozone, at least for this week, creating a volatile trading week.
Technicals
The Dow continued its super congestion between the 12,200 and 12,000 points level today. The Dow has been trading largely within this region for the past 8 sessions with the last 3 sessions touching both the upper and lower limit intraday. Once again, the 12,200 points level proved itself to be an extremely strong resistance level. If the Dow fail at the 12,200 points level once again, it will complete an intermediate double top formation with support at around the 11,200 points area once again.
For now, the Dow turns a short term neutral trend within an intermediate neutral trend and primary bull trend.
