This afternoon, the major stock market indexes are getting pummeled. The Dow Jones Industrial Average is trading lower by more that 225.0 points in a broad based decline. Traders and investors are selling everything this afternoon as the European debt crisis seems to be getting worse by the minute. All of the U.S. economic data was also very poor today which is certainly adding fuel to the sell off. The Federal Reserve Bank’s quantitative easing program is also scheduled to end later this month. Many investors are now wondering who is going to prop the stock markets up?
The U.S. Dollar Index has caught a sharp bid higher today after starting the day in negative territory. The U.S. Dollar Index is now trading higher by 0.06 cents to $74.70 per contract. The low this morning for the U.S. Dollar Index $74.34 around 11:00 am EST. This is certainly a major move higher for the U.S. Dollar Index intra-day. As we all know by now, when the U.S. Dollar Index trades higher the major stock indexes will deflate and trade lower. We can only imagine how low the major stock indexes would be down if the U.S. Dollar Index was trading higher?
Greece, and other nations in the European Union continue to face major debt problems. After all, Greece received a bailout just one year ago by the European Union and the International Monetary Fund. They are already in need of restructuring. We can only wonder if Portugal, and Ireland, will need to be restructured as well. What is going to happen to Spain, Italy, and other nations that have not received an official bailout yet? These problems are not going to disappear anytime soon.