Stock Market Update

[BRIEFING.COM] The market continues to drop. The Dow Jones Industrial Average is nearly 800 points lower today.

The downturn is related to the unwinding of momentum trades that is causing a stir for speculators late to the party (i.e., they are weak-handed holders and are getting shaken out of positions by the disappointing price action).

This unwinding is seen by some as a sign that the market was on the cusp of a near-term top. That consideration, and the counter-trend price action, has fueled an uptick in seeking protection to hedge against further downside risk, evidenced by the gain in the CBOE Volatility Index (18.05, +2.39, +15.3%).