NEW YORK ( TheStreet) -- Stocks retreated sharply Wednesday after renewed concerns about the European debt crisis obliterated gains made the previous day.
The Dow broke above 11,000 points in the afternoon but remained in red territory throughout the session. As many investors predicted, Tuesday's rally was short term only, with stocks yet to find a bottom.
By the close, the
Dow Jones Industrial Average had plunged 520 points, or 4.6%, at 10,719. The
S&P 500 was lower by 52 points, or 4.4%, at 1121, and the
Nasdaq was off by 101 points, or 4%, at 2381.
"This may not be the final bottom," said Ralph Fogel, head of investment strategy at Fogel Neale Partners. But, the "increased volatility indicates a change in direction is likely," he continued. Because there has already been a "climatic selling event," Fogel says there is likely little selling left."At long as the market stays in this range and does not make a new low, we think that it will move up at least on a short term basis," said Fogel. "At this point, it's like monitoring a patient." Fresh worries about a debt contagion across the Atlantic stemmed from concerns over European banks, which took a beating after costs to insure French, Greek, Italian and Spanish debt rose.
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