I included below the one-month chart of DIA for February, 2010. The Dow threatened to lose the 10000 level but as always, the PPT stepped in and arrested the fall. See if you can spot the day I am talking about. Here's a hint. Look for the day with by far the strongest volume. That would be nearly 4 times the daily average of the week at 29 million shares. There were plenty of reasons for the markets to sell down. Jobless claims were still climbing while housing experienced a decline that put new homes and existing homes at low levels never before measured. Greece popped up as the latest debt casualty with with Italy and Spain suspected to be next in line. Of course, the debt is not really the problem. The problem is, as always, the derivatives connected to the debt. Therefore, everything is too big to fail and bailouts are being arranged as I write. Of course, the bailouts are all engineered on the back of more derivatives and credit default swaps. Thus, the debt problems are never really cured. They are just postponed to a time when the world sobers up from its current liquored up state of debt addiction. Until then, the Fed will continue to support the market because unless the stock market stays up, the credibility of the 'economic recovery' and all the lies the governments feed the investors come into question.
Chart courtesy StockCharts.com