Today the DJIA dropped another 71.30 points to 10930.90, the lowest level in three months.  The Wall Street Journal attributed the drop to interest anxiety.  BusinessWeek blamed the problem on concerns for all three of the “big ‘I’s” rising interest rates, rising inflation, and dwindling corporate income.  The DJIA has lost over 316 points this week and markets in Japan, China and Europe have all taken a beating.  European markets recovered slightly.

“When we have big down days on big volume, that’s a sign of capitulation,” said Chris Johnson, manager of quantitative analysis at Schaeffer’s Investment Research in Cincinnati. “Monday and Tuesday, we saw selling, but it wasn’t the type of volume we like to see for short term-buying opportunities…. All the sellers aren’t out of this market yet.”

If they’re not, it might be a good time for them to kiss their losses goodbye and tread water in the money markets for awhile, at least through September.