Don't Get Used to a Five-Digit Dow
The rally of the Dow Jones industrial average past 10,000 has lasted two days and appears in jeopardy already. As I noted in a post last month, a rise in the benchmark stock index above milestones like this often turns out to be an inauspicious event.
With two hours of trading to go on Friday, the Dow was hovering just below 10,000 after trying to recover from a morning drop. No single trading day means much, but a close below the line, especially when the next trading day is the anniversary of the 1987 crash, could herald a shaky opening on Monday.
Read more:
- Expect Dow 10,000 to Be a Ceiling Rather Than a Floor
- More Good News Sends Stocks to a Three-Week Low
- Economic Reports Give Wall Street Too Much of a Good Thing
