Mon, 10/23/2011 1:25 PM – Pivotal Week in Markets

Well, here we are back at the bottom of the trading range. Will it be broken? This week should tell us and maybe even today. If it is decisively broken, the market drop could steepen.

The old closing low was 1,120 on the S&P 500 index. The index is at 1109 and it has been sliding all day. The previous 2011 closing low on the Dow Jones Industrial Average was 10,719 and we are only 7 pts. above that. The Russell 200 small stock index has already given way. The NASDAQ is still 1% above it 2011 low.

Of course, the driver is still Europe where no news is bad news.