Capitulation Sell-Off Or Start Of Something Big?

By: Lee Brodie
Producer

Bulls retired for week-end licking their wounds with Dow [.DJIA 9931.97 -323.31 (-3.15%) ] tumbling by triple digits again.

Investors ran for the exits after concerns that the latest jobs report wouldn’t live up to expectations proved to be well founded.

Although 431,000 jobs were created in May, most of those gains were due to temporary workers hired by the census. And to make matters worse the overall number fell short of Street expectations.

Meanwhile reports of another possible debt crisis – this time in Hungary added to the negative sentiment.

By the close the S&P 500 [.SPX 1064.88 -37.95 (-3.44%) ] had fallen below 1,070, a level which had been considered support and just below the intra-day low the market reached during the "flash crash" on May 6 of 1065.

How much farther is the S&P going to fall? read more