Stocks Drop on Disappointing Housing Numbers

Disappointing housing numbers were the fuel for a sell off in stocks today. 

. This was well below the consensus estimate of 6.12 million sales.  The lower than expected sales caused some to worry about "a double dip in housing," according to the chief

officer at Harris Private Bank in

.

Adding to the downward pressure was a warning from

of higher loan losses at

banks.  S&P joined Fitch, which had warned of problems at

, in cautioning investors about issues at banks in the

.

The end result was a drop in all of the major

.  Only two of

's 30 components,

and

, were able to book gains for the day. 

and

were the biggest losers in the Dow for the day. 

.  The S&P 500 was off by 1.6 percent to 1,095.  And the tech heavy Nasdaq dropped despite good news from

, falling 1.2 percent to 2,262.

One of the biggest concerns of traders was the S&P 500 dropping below its 200 day

.  According to the chief market strategist at BTIG LLC, that drop is "not a good signal."  Furthermore, he added, "that's not all, lack of volume is also negative. Investors won't be making big moves unless the economic data or earnings season provide a catalyst."

And the senior technical strategist at Schaeffer's Investment Research added "

."

In addition, according to the chief market strategist at

, there's concern

will release a more pessimistic report on the economy in its statement that accompanies its

announcement. 

, he warned.

We'll find out tomorrow.  It will be an interesting day of trading to be sure.

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