Dow Jones Close 10/24/08 - Stock Market Closing Price, Vix

The Dow Jones Industrial Average was another roller coaster ride on Friday, 10/24/08, closing at 8378, Down 312 points. The morning started with traders and investors waking up to a " limit down " in the stock market futures due to the crash of Asian and European stock markets overnight. A limit down is a circuit breaker for when the markets plummets to unusual levels...they stop futures trading until the stock market opens. In this case, it was 5% down for pre market. Everyone thought when the stock market opened at 9:30am, the next limit down would be hit at 10% or 1100 points on the Dow Jones....keep in mind, these limit down figures were made several months ago when the stock market was much higher. 1100 points down on the Dow Jones would have been more like a 14% plunge.

So what happened at the open? Everyone was expecting total panic and selling but the buyers quickly came in and the markets rallied. The Dow has been trading in a range all day from 8275 to 8525. Many big traders are still calling for the capitulation we did not get Friday, to come Monday. Monday will most likely be one of the most crutial days to the stock market yet....and it will start with what the Asian markets do on Sunday Night 10/26/08. I will be posting a blog during Sunday Night Football on NBC, so make sure you check back!

Dow Jones Technical Analysis 10/24/08:

Ok, so today the Dow Jones made a low this morning of 8187 but it has tested that 8200 level several times and it has held. Today is the first time i've actually seen panic buying set in for awhile. When we did not get the big plunge most people were expecting, buyers, whether they were short sellers covering their positions, were really stepping over each other to buy. All day the markets have been really twitchy to the upside....almost like the markets are a coiled spring ready to rocket higher. Your resistance on the Dow Jones is 8700, if we can close above that and stay up there for a few days, we could indeed rocket higher next week. However, there are some key events next week to watch. They are noted below.

Economic Data for next week:

Consumer Confidence - 10/28/08 10am
Federal Reserve FOMC Statement - 10/29/08 2:15pm
Jobless Claims - 10/30 8:30am

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