What another crummy week that was. The DJIA finished the week down another -1.5%, Nasdaq -2.6%, S&P 500 -1.9% and the Russell 2000, only -1.0%. Year to date gains for said listed indices are +2.4% (DJIA), -0.3% (Nasdaq), +1.7% (S&P 500) and +1.4% (Russell 2000).
Even though we had another down week, it could have been worse. Japan could have had a nuclear melt-down. However, a nuclear meltdown at the Fukushima complex s still being averted.
One could see all our troubles manifested in the Volatility Index (VIX), which spiked s much as 55% this week, and ended the week up only +22%. The Japanese yen also hit a record high of 76.35 against the dollar.
On Tuesday, the FOMC decided to leave its monetary policy unchanged, including its intention to carry out a $600 bln bond purchase program through June.
With all our troubles there were several sector strength leaders which included energy (+0.5%), basic materials (+0.01%), financials (-1.5%), and industrials (-1.6%).
So, is the selling over?