Poor action in Europe sunk U.S. indexes as we saw a significant gap down at the open and no real buying effort all day. The S&P 500 fell 1.23% and the NASDAQ 1.50%. Volkswagon is suffering through an emissions fraud issue which sunk its stock and lead to a big bout of selling in Germany.
VW earlier Tuesday said 11 million vehicles were equipped with diesel engines at the center of a widening scandal over faked pollution controls that will cost the company at least 6.5 billion euros ($7.3 billion). The shares declined 20 percent, bringing its drop in two days to 35 percent, or about 23 billion euros in market value.
Those of you seeing a bearish head and shoulders formation on the indexes probably want to read this story via Bloomberg.Continue reading