Europe Jitters, Rambus, Spook Markets (DIA, QQQ, SPY, RMBS)

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Jitters over Europe and a Rambus plunge spook U.S. markets into a late day plunge

Fitch Ratings warned that U.S. banks could be damaged if the crisis in Europe isn’t contained and the news spooked markets into late day declines of -16.% for the Dow Jones Industrials (NYSEARCA:DIA) and -1.7% for the S&P 500 (NYSEARCA:SPY)

The tech sector (NASDAQ:QQQ) was whacked for a 1.7% loss as Rambus (NASDAQ:RMBS) lost a court ruling and plunged 60%.

Economic news so far this week has been relatively positive with the November Empire Index gaining +0.6% versus a previous decline of -8.5%, Industrial Production rising +0.7 from a previous -0.2 and the November Homebuilders Index registering 20 compared to last month’s 17.

On  a technical basis, major indexes like the Dow Jones Industrials (NYSEARCA:DIA) and S&P 500 (NYSRARCA:SPY) are now back near support levels of the recent trading range and so the next few days will be critical in determining the future of the market as we head into the holidays.

Tomorrow’s news brings us weekly employment reports, housing starts and the widely watched Philadelphia Federal Reserve report.

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