The Dow is down 50 points right now. Getting close to 13,000 at 13,050 or so. I’m just an amateur, but those 1,000 marks on the Dow seem somewhat significant pyschologically to me. I will be interested to see what happens if the Dow closes below 13,000, if that sparks another round of sell-offs, or if it is a non-event.
They are, but if you want to see where the action is look at bond yields. They are going down again today.
The Dow has just eased through a key support point(13,134). That, in and of itself, is not conclusive, but it is an event worth noting.
For example, if the Federal Open Market Committee next week does NOT lower the fed funds rates, I expect the markets will go much, much lower.
The bond traders have already placed their bets. Just look at bond rates: 5 YR T-Note is now a 3.97% yld, 10 YR T-Note is a 4.31% yld, and the 30 YR T-Bond a yld of only 4.63%.
This is going to be interesting.