Volume grew across the board Wednesday, smearing the Nasdaq with a fifth distribution day and the NYSE with its fourth within the past four weeks. That signals a substantial amount of institutional selling, which can wreck a market rally.
For that reason, the market outlook returns to an uptrend under pressure. In such volatile conditions, it's simply harder to make big money in stocks.
Wednesday's broad market plunge in heavier volume reflected the manic-depressive state of investors. This time they reacted to somber headlines on a European debt and budget saga that has already consumed Portugal, Ireland and Greece, and is now threatening Italy. The No. 3 economy in the EU is struggling to pacify investors as its sovereign debt yields soared past 7%.
The final numbers:
Dow -387
Nas -105
S&P -46 to 1229
Here is the intraday chart:
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