Tremors

"I feel it."
--Jack Goddel (The China Syndrome)

The Dow was down over 650 pts yesterday, marking the largest single day decline in several years. Because the Dow has risen so much over the past few years, however, the absolute decline translates into a 2.5% relative loss--well within the systematic distribution of inter-day moves in the index.

Moreover, yesterday's decline broke thru only the near term-uptrend line. Longer term technical trends remain firmly intact.

Market participants would be foolish to dismiss the recent price action, however. It could be that higher rates are finally starting to weigh on investor psyches.

Today's tremor could be tomorrow's earthquake.

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