U.S. stock markets dropped again on Thursday as the recent rally stalls at resistance and data point to global recession.
After a sharp rally to long term resistance levels, global markets have fallen back from recent highs. Technically, overbought indications are unwinding amid fundamental headwinds.
The global economy continues to slow and Fed President James Bullard dampened the outlook for more quantitative easing coming in the short term.
Markets have been anticipating more monetary easing by the Federal Reserve due to recent comments by Fed Chairman Ben Bernanke and several of his Presidents, but today another President, Mr. Bullard, pushed aside such speculation on the grounds that the economic data had recently improved.
The Dow Jones Industrial Average (NYSEARCA:DIA) fell 0,9%, the S&P 500 (NYSEARCA:SPY) slipped 0.8%, the Nasdaq Composite (NYSEARCA:QQQ) declined 0.7% and the Russell 2000 (NYSEARCA:IWM) slipped 0.8%.