Dow Closes Below 11,000 After 213-Point Plunge (Amid European Debt Concerns/Goldman Testimony)

[Hissyspit]

Source: CNN

Dow plunges 213 points, breaks 11K

By Alexandra Twin, senior writerApril 27, 2010: 4:08 PM ET

NEW YORK (CNNMoney.com) -- Stocks fell Tuesday after Standard & Poors cut Greece's debt rating to junk and lowered Portugal's debt rating, raising fears that a euro zone debt crisis could slow the global economic recovery.

The Dow Jones industrial average (INDU) tumbled 213 points, or 1.9%, closing below 11,000, a key psychological level. The Dow ended the previous session at its highest point in 19 months.

The slide was the Dow's biggest one-day point drop since July 15, 2009 when it lost 257 points.

The S&P 500 index (SPX) fell 28 points, or 2.3%, closing below 1200, a psychological level traders look at. The Nasdaq composite (COMP) slid 51 points, or 2%.

Stocks were flat to lower in the morning as Goldman Sachs' sought to defend itself on Capitol Hill against allegations it profited from the housing market collapse. But news that ratings agency Standard & Poor's had cut Greece and Portugal's debt ratings overshadowed everything else, giving investors a reason to retreat on the back of an 8-week advance.

Read more: http://money.cnn.com/2010/04/27/markets/markets_newyork/index.htm

[Dr.Phool]

1. A key psychological level.

More like a key psychiatric level, because you gotta be nuts to be in this market now.

:hide:

[xchrom]

2. Recommend

[TheWatcher]

3. And absolutely NONE of the All Is Well Brigade shows up to talk up their Sacred Cow.

Bubbles Burst.

Note to those who think this Bubble is based in some kind of fundamental Reality:

THIS is what happens when the Market is allowed to trade with even the SLIGHTEST bit of natural normalcy.

This Market is not real.

"The Recovery" is not real.

Take Heed.

[Lost4words]

4. yup! not a Bright Sider to be seen or heard.

[TexasObserver]

5. Did the same thing last quarter. It'll likely be back up soon enough.

http://bigcharts.marketwatch.com/charts/big.chart?symb=djia&compidx=aaaaa%3A0&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&size=2&state=8&sid=1643&style=320&time=8&freq=1&nosettings=1&rand=4116&mocktick=1&rand=2330

The trend the past year is clear.

We'd better hope it doesn't reverse in the next six months, or we'll be looking at a GOP congress.

[TheWatcher]

7. The Trend IS Clear.

It's a Bubble.

Just like 98-2000.

Just like '03-'08.

And just like those, it will Collapse.

TPTB will likely attempt to push it back up.

They are doing nothing but delaying the inevitable, because in the absence of anything real or fundamental to continue to support these artificially inflated asset prices, this sham of a Casino has NO CHOICE but to eventually correct the way Bubbles tend to do when they burst.

See the above for examples of what happens when this occurs.

And THEN all the Bubbleheads on CNBC, Helo Ben and Goofy Geithner, Goldman Sachs and the Usual Suspects, The Media, and our so-called leadership on BOTH sides of the feckless joke we call Congress will scratch their heads, and fling their arms over their heads in orchestrated amazement, and once again exasperatingly exclaim.....

"No One Could Have Foreseen....."

And THEN the designated Bail Out Brigade will once again demand from the rest of us that the "system" be "Bailed out" for our own good (and their continued ability to be able to fleece us)

And the cycle of Wealth Transfer will begin anew.

IF they can reflate it.

BUBBLE ECONOMICS is an epic failure.

How many times do we have to go through this before We The People finally wake up to The Shell Game, and stop falling for it again, and again, and again?

LEARN.

[TexasObserver]

8. Fortunately, I'm reality based.

[DuaneBidoux]

6. Just read that Portugal's debt is being impacted. Next probably Spain.

I've always found it interesting that posts of this nature don't seem to get much notice but honestly we could be on the edge of the financial global system as we have known it up to now coming unraveled.

Spain would likely be next in which case you would basically have two people in the boat (Germany and France) trying to hold onto the lines while Portugal, Greece, and Spain give way.

I still don't think it likely but if Europe were to have a debt crisis it would likely pull the rest of the globe down with it. In which case I am thankful that Obama is captain.

[TexasObserver]

9. 11,167.32

[Yavin4]

10. Now Would Be A Great Time To Buy Stocks

The Eurozone crisis will be resolved one way or another. Yes, there will be pain, but it will be resolved. Use this time to add to your portfolio.