As speculation of Europe Debt Crisis continue to worsen, the Dow Jones dropped to 9,908.39. Today's closing is the lowest in three months. Contemplation lingers that American banks will suffer if the European Banks fail to pay off their debts. Jeffrey A. Hirsch the editor of "The Stock Trader’s Almanac" said, “While it may not be important technically, falling below that level indicates that the whole economic picture is not as rosy as everyone had thought." I believe that Dow Jones will continually dip because as U.S. bankers realize that countries such as Spain and Greece may default on their debts, bankers will become hesitate to invest.
The Dow Jones first hit the five digits in 1999, and it fell back to four digits in 2003 due to the dot com bubble. The Dow set a record high of 14000 points in October 2007, but after the credit bubble, the Dow is down 30% of the record high. It will take some time for the Dow Jones to continually maintain above 10000 points. We will not see the Dow Jones much above 10000 because unemployment is still high and companies will have low earnings. When companies start to make greater profits, we will see the Dow much above 10000.
