Stock Market Index Reverting back To 2009

Jan. 28, 2010 - PRLog -- The technology sector swooned a day after Apple's announcement of the iPad, leading a sharp decline Thursday that put the broader stock market on track for its worst monthly loss since the bear market ended.

The Dow Jones Industrial Average recently fell 108 points, or 1.1%, to 10127.79, off 2.9% for January. If that loss holds up through Friday's close, it would represent the biggest decline since a nearly 12% slide in February 2009, shortly before the market hit 12-year lows. The S&P 500 was down 1% recently, hurt by declines in every sector except consumer staples, a defensive category that edged up 0.1%.

The S&P's tech sector slid 2.8%, while the Nasdaq Composite Index was down 1.9%, hurt by a 4% decline in Apple. Wednesday, the company introduced its new tablet computer, the iPad. But expectations appeared to have gotten too high prior to the product's unveiling, leaving few buyers for Apple shares on Thursday. Read the MarketWatch account of the iPad and Steve Jobs's questionable assertion about Apple's mobile-market leadership.

Traders have winced at the broader market's slide for the month, though few are betting that a full-blown bear market will return.

"The market coming into the year was overdone on the upside," said Allen Greenberg, head of trade execution at the Chicago Board Options Exchange for BNY ConvergEx.

"It seems to me the market was stabilizing until the president and his guys started really bashing the banks," proposing increased taxes and regulations that have recently weighed on the sector.

The financial sector hovered near the flat line on Thursday. Greenberg and other traders say they are looking for more certainty about new rules for the industry before it can enjoy a sustained rally. In recent years, January has not been good for stocks, with 2010 marking the third-straight year that stocks fell in the month.

However, the bulk of this January's declines have come over the past seven days. The Dow reached a new 15-month closing high for the year on Jan. 19 and has quickly lost some 650 points, or 6%, since then. That marks the worst seven-day period for the Dow since March. By Kristina Peterson, NEW YORK (MarketWatch)


In order to protect your retirement account for 2010, please visit:

http://www.onlineprnews.com/news/44070-1277942751-market-...

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