Bad Luck for S&P 500: Index Dropped to Seven-Week Low

Yesterday did not start very successfully for US trading grounds; however, hope for growth of major indexes remained. Closer to mid-session it became clear that the trend would not increase during the trading session. The trading session finished, being influenced by deep “bearish” nature.

A number of companies have provided negative reports. From the total of 187 companies about 60 percent have proved to be negative. At the same time, unemployment in the USA remains at rather high level. Investors have been surprised by certain statements of Federal Reserve System, as informed to the «Market Leader».

Yesterday Standard & Poor’s 500 index appeared at extremely low point in last seven weeks. By this point index has lost 2.3 percent, although it has been characterized by positive trading for four months.

According to the results of the trading session, Standard & Poor’s 500 has dropped by 0.31 percent in one day, having amounted to 1408.75 points. Dow Jones Industrial Average index has lost 0.19 percent – having dropped to 13077.34 points. Nasdaq Composite index has dropped by 0.29 percent, and it equals to 2981.7 point.

Standard & Poor’s 500 index has finished forming descending zigzag within wave c of higher level with sub-wave (5), according to the experts of . Therefore, descending trend within sub-wave (5) may be suggested as an alternative. Reversal uptrend is considered to be the main scenario.