The Dow Jones Utilities average broke below the 474 level on Friday Aug 1. It had closed at 484.88 on July 31, and dropped more than 15 points on Friday to close at 469.53. Today it edged down another couple of points to close a little above 464 . The key point is that on June 19 it had closed over 526, and now (not quite two months later) has dropped 12%, and broken below its 474 support level.
As I indicated a couple of times in previous posts, this break could signal a renewed fall in the Dow Jones Industrial average, and in the market in general. Especially since the economy has been running neck-and-neck with the alleged success of the surge in Iraq as the #1 election concern (and recent polls put the economy once again at the top of the issues of concern), that renewed fall in stock market averages could obviously have a strong effect on the upcoming election. But see my concerns in the next post, #52.
However you think James Carville behaved during this year’s primaries, he still nailed the major campaign issue eight years ago, indelicately--as always for him--but accurately: “It’s the economy, stupid.”
-- triton --
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