Dow Jones: Goldman’s $30 Drop Turns Into a 500-Point Dow Selloff

Nvidia gained about 1%. Micron and Intel rose nearly 2%. AMD added roughly 3%. The AI bounce that Monday’s selling set up arrived Tuesday but it landed in the Nasdaq, not the Dow. Microsoft, Apple and Amazon are Dow components and all three were lower. The group catching bids is not the group carrying the blue-chip average. That is why the Dow is telling a more bearish story than the S&P 500 or Nasdaq numbers suggest.

What to Watch

The Dow is not going to recover while the 10-year sits near 5%. That is the math. Goldman alone took 180 points out of the index Tuesday and the rest of the high-priced names piled on. Those stocks do not stabilize at these yield levels. They need Warsh to sound finished Wednesday afternoon. Anything that keeps December in play keeps bond sellers active and leaves the Dow exposed as the weakest of the three major averages heading into Thursday.

The bias leans bearish with the main trend down and the Dow trading below its 50-day moving average. Tuesday’s selling reaffirmed the downtrend at 51962.71. The targets below are 51756.14 and the July 23 bottom at 51542.06. That bottom is the trigger level. A break through it with volume opens the path toward the 200-day moving average at 50039.28 and that is a long way down from here. Resistance sits at 52326.70 and the retracement zone at 52765.33 to 53143.20. The trend does not change to up until 52750.88 is taken out.