If the DJIA has an important support level at 12,000, either technically or psychologically, the floor is about to be breached. The index sits at 12,050, and there are a number of indications investors will move out of stocks to fixed income, and, perhaps gold. Several factors will be the drivers of the move. The first is that faltering GDP around the world will affect earnings of US companies, probably as early as this quarter. And economic activity in the US has begun to slow based on recent job and GDP numbers. The financial components of the average as particularly vulnerable because of worries that balance sheets and corporation loans will be hurt by a slow economy.
DJIA Support At 12,000
