Both the DOW Jones 30 and SP 500 index fell over 1% today during the worst trading session for 2017 for US Blue-Chip stocks.
Banking names led the hefty losses, with the DJ Banking Index trading back below the 50-day moving average.
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Dow/SP component Goldman Sachs lost almost $10.00 on the day and is now 10% lower than the March 1st close of $253.00.
A confluence of lower loan growth, political uncertainty and extended valuations pressured the banks, as well as the general market, lower on very high trading volume.
Technically, both the DOW Jones and the SP 500 have posted their first close below the 30-day moving average since November 7th.
The unwinding of the overbought conditions in many of the index components will likely be a process more than an event.
With the banking sector very heavily weighted in the ASX 100, this process will likely pressure Australian names lower, as well.
Investors who are looking to hedge their portfolios or profit from a down move in the ASX can trade either the BetaShare BBOZ or BEAR Exchange Traded Funds.
These are inverse funds which gain value as the ASX index trade lower. Please call for more information.
