SANTA CLAUS RALLY TURNS INTO MARKET CARNAGE: Precious Metals Push Higher In A Sea Of Red
The much awaited and hoped for Santa Claus Rally turned into a complete rout today as the broader markets continued to sell-off to new lows this month. The Dow Jones plunged a stunning 653 points today, the worst in the in the 122-year-old history of the index. Furthermore, the Dow is on track for its biggest December loss since the Great Depression.
The Dow Jones was trading at nearly 26,000 at the beginning of December and just closed at 21,792. That is a 16% decline so far this month. As I mentioned in my last video, GOLD INVESTING: What Really Drives The Market Price, I posted a chart showing that the Dow Index had a critical support level of 24,000. I stated that the Dow reached a high of 26,000 at the beginning of 2018 and has been trading up and down off the 24,000 support level for the entire year. The Index actually hit another record high of nearly 27,000 at the beginning of October.
When the Dow finally closes below the 24,000 on a monthly basis, it can get very ugly. We still have three full trading days and a half day on New Year’s Eve for the Plunge Protection Team to do their magic and push the Dow back above the 24,000 level, but I doubt they will be able to do so. If the Index was down 500-1,000 points from the 24,000 level, then it might be possible. However, the Dow is down 2,200 points from that level.
Here is my updated Dow Jones Index with the Monthly support and resistance levels:
You will notice that the present Dow (monthly) candlestick is the biggest decline ever.
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