It was an incredible day in the stock market. The graph above shows today’s price action in the Dow Jones. Equities sold off hard at the open on some tepid economic reports, continued worries in Europe and a major merger that was called off. But within an hour, equities recouped about two-thirds of their losses only to descend in a steady and persistent drip down on Ebola scares and a widespread panic.
Late in the afternoon the Dow pared losses to close down 173 points–or 1%.
Is this the capitulation that the market needs? Probably not, but current conditions are at extreme oversold levels.
More to come later…