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Blood On The Street

|Includes: BAC, MS, QQQ, Financial Select Sector SPDR ETF (XLF)

 Wall Street is a sea of red as the major stock indexes are getting pummeled. The NASDAQ Composite is trading lower by over 2.0 percent, this index is leading the decline. The U.S. Dollar Index is trading sharply higher today and this is certainly helping to deflate the major stock indexes. When the dollar is higher the stock markets are usually lower. Should the U.S. Dollar Index pullback into the close the major stock indexes could possibly trade off the lows of the day. Traders must closely follow the U.S. Dollar Index over the next few days.

The leading financial stocks are selling off this afternoon. J.P. Morgan Chase & Co.(NYSE:JPM) is probably the most important financial stock in the market. This financial giant is trading lower by $1.29 to $39.45 a share. When JPM stock is trading lower on the day, it will usually mean that all of the other financial stocks will be declining as well. Bank of America Corp.(NYSE:BAC), and Morgan Stanley(NYSE:MS) are making new 52 week lows this afternoon. Traders and investors are now wondering how much exposure these banks have in European debt.

Nicholas Santiago