Dow Industrials post steep declines heading into final trading hour of the week, currently @ 11888 -256 or -2.15%

Friday, March 14, 2008

Component leaders BA +1.5%. Component laggards C -5.6%, GM -5.5%, AXP -3.9%, HD -4.0%, JPM -3.7%, BAC -3.6%, AIG -3.4%, PFE -3.5% . Dec/adv @ -29:1. NYSE TRIN @ 2.33. NYSE Breadth @ -2314.

Sentiment Indicators Weekly Recap - Broad market volatility has moved sharply higher following a week full of wild swings in the market

Broad market volatility has moved sharply higher this week, spiking above Feb highs and the 30.00 level today. Although the VIX remains below the Jan intraday highs, it is setting up for the highest close since 2003. The increase in market volatility has taken place as the markets made drastic swings through the week (Dow has had a 569 pt range this week), although the major averages are now near unchanged levels on the week (SPX -0.9% on the week, Dow -0.1% and Nasdaq -0.5%). The VIX is up 18% from last Friday's close now at 32.39, and the tech-focused VXN (Nasdaq Volatility Index) higher by 16% on the week at 34.03. The "fear gauges" experienced moderate swings (with VIX ranging from as low as 24 up to almost 30) before seeing today's spike on rekindled credit and market concerns following Bear Sterns' (BSC) loan agreement to access liquidity as needed. Although the market volatility is elevated, both the VIX and VXN remain below their highs set on the Jan lows in equities (VIX spiked to 37.57 on 1/22)... The CBOE put/call ratio is currently at 1.37 (has closed above 1.1 since 2/27), indicating higher put trading than call trading.


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