The market started the day strong Thursday, but another major earthquake in Japan, this one measuring 7.1 on the Richter scale, sent the market plummeting in the late morning as traders scrambled to gather more information. The quake’s epicenter was not far from that of the first 9.0 magnitude temblor, and although tsunami warnings rang out in Northeastern Japan there has been no major damage reported this time around. The market closed in negative territory, but pared some of the session’s earlier losses.
The market was able to rally back into the two-week mini-downtrend, putting in another tail of indecision. Ascending channels often resolve themselves to the downside before going higher, so with another weight on this market from the earthquake we could see some more downside action. However, it is a bullish sign that the market was able to pare losses despite another major natural disaster in beleaguered Japan.
For more market and stock commentary watch the T3Live.com Daily Recap with Scott Redler (below).
*DISCLOSURE: Scott Redler is long BAC, SHZ, LMT, REE, JPM, WFC, AAPL, BIDU, GLD, CHK, FCX, V, F, RBY, AUY. Short SPY, NYX.
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