The market started making new lows (S&P 500 734.52) from those of November (S&P 500 741.02). The rest of the day was choppy and ended with the S&P 500 closing at a 12 year low. Volume was high.

Surprisingly the S&P 500 printed a 12 year low but no crash occurred. Also fear indicators while high remained pretty much stable.  Three news dominated the market day.

1. The government converted up to $25 billion of Citigroup’s preferred shares to common stock.
2. U.S. GDP shrank 6.2 % in the fourth quarter (vs 5.4% exp).
3. GE slashed its dividend by 68 % to 10 cents.

The Financial Sector fell on the Citigroup news. The Health Sector continued to print a substantial decline on budget plans.

Trivia:

1. The S&P 500 marked its fifth down month out of six and the biggest drop since October.
2. U.S. stocks have lost $10 trillion since peaking in October 2007.

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