Investors stampeded for the exits Tuesday after the worst day in the market since the May 6 flash crash.
The Dow closed below the psychologically important 10,000 level and the S&P 500 broke below its previous closing low for the year.
The day started badly with the Conference Board making a downward revision in its economic index for China triggering concerns about the ability of that nation to power a global recovery.
Adding to the headwinds, U.S. consumer confidence dropped sharply in June; also the euro traded sharply lower on renewed concerns about Europe’s banks.
However, despite that string of negative catalysts the S&P held the technically important 1040 level.
Is that bullish?
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It speaks to me that the S&P held 1040, says Pete Najarian. Late day the S&P actually dropped below 1040 and then bounced.
Considering the market has been trading on technicals it’s meaningful that we saw buyers at this level, he says.
But there’s no such thing as a quadruple bottom, counters Tim Seymour. I just don’t think the market can hold. I think we’re probably going to 1020 and then 980 after that.
I’m in Tim’s camp, adds Guy Adami. I think we’re going lower and we’re probably going a lot lower. As bellwethers, I’m watching the action in Goldman , Potash and Caterpillar , says Guy Adami. I think all these stocks have room to the downside.