Dow slipped ...148.89 (1.49 %) in red zone

Dow started retracement after 3 days confusion

U.S. stocks fell more than 1 percent in yet another late-day selloff on Tuesday as unexpectedly poor housing figures and the puncture of a key technical level sapped buying interest.


Japan's Nikkei average is likely to slip towards a key support level on Wednesday after unexpectedly poor U.S. data fanned fears about the strength of the economic recovery in the United States, but short-covering should limit losses. Sales of U.S. existing homes unexpectedly-fell in May in the latest of a series of weak economic releases, while energy companies also dropped on worries about U.S. energy policy.

But Tokyo analysts said they thought the housing data was being used as an excuse to take profits after recent rises. "If you take a good look at the data, while the May sales were lower than expected they were still up 19.2 percent compared to last year, while April sales were revised upwards," said Nagayuki Yamagishi, a strategist at Mitsbishi UFJ Morgan Stanley Securities.

"The yen isn't strengthening and I don't think you can really say there's any increase in risk avoidance. Expect short-covering at the lows."

source...http://www.reuters.com/article/idCATOE65L09J20100622?rpc=44

Dow Daily chart

ndex Value: 10,293.52 Trade Time: 4:02PM EDT Change:  148.89 (1.43%) Prev Close: 10,442.41 Open: 10,441.95 Day's Range: 10,283.40 - 10,493.57 52wk Range: 8,057.57 - 11,309.00