Saturday’s New York Times reported that “stocks tumbled Friday in one of their sharpest declines this year, leaving the Dow Jones industrial average firmly below 10,000.” They went on to confirm that “the sell-off was swift and brutal, with the broad market losing roughly 3.4 percent.” The Dow fell 324 points to close at 9,931.97. reports, since peaking on April 26, the Dow has now lost 11.4% and sits firmly in so-called correction territory. Since hitting rally highs on April 23, the S&P 500 has lost 12.5% and the Nasdaq has lost 12.3%.”

CNN goes on to say that, “a weaker-than-expected U.S. jobs report and renewed concerns about the European debt crisis pummeled stocks Friday, at the end of another down week on Wall Street. The euro fell to a four-year low and investors piled into bonds, looking for safety.”

According to Hightower, “the real undermine of the markets was provided by statements from a Hungarian official who reportedly suggested that Hungary was going to be the next Greece. Since the market doesn’t need much in the way of fresh concern toward the Euro zone debt crisis to escalate anxiety, it would seem like the bear camp is set to start the new trading week with the edge.”

There does not seem to be any reason to expect this market to rally in the coming weeks. “Bullish” factors seem to be being discounted at this time. Hightower reported that “markets overnight seemed to discount some progress in containing the oil leak in the Gulf of Mexico and the trade also ignored news of a fairly robust UK manufacturing result for the second quarter.” According to, “there doesn’t appear to be anything in the schedule to turn the sentiment upward and it could take several days for the fear toward Hungary to dissipate.” Expect more downward pressure in the coming days as the market tests new lows.
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