Rather, it is one of those psychological barriers—much like 1,000 was for the Standard & Poor's 500 or 2,000 for the Nasdaq—that makes individual investors more comfortable but doesn't change anything as far as market fundamentals go.
"That would be a positive headline event that not necessarily on its own would be able to propel the market higher," says Dave Lutz, managing director of trading for Stifel Nicolaus in Baltimore.
In fact, Lutz says, the market sees to be indicating a move down after surging more than 50 percent off its March lows.
Consecutive days of commodity drops—oil and gold were primary rally drivers—combined with a stronger bid in the dollar indicated to traders Thursday that the market may have run out of gas—10,000 or no 10,000.
"While you might get an initial pop from the Dow getting through 10,000, it's more psychological than technical," Lutz said. "A lot of the metrics that have led the market are breaking down."
Of course, the last time the Dow broke 10,000 was on the down side.
It happened Oct. 6, 2008, during the darkest days of the financial crisis and just three weeks after Lehman Brothers failed, an event that many experts attribute to the acceleration of the financial system's collapse.
The Dow dropped 3.5 percent that day and would never visit five figures again.Page 2 of 5 | Prev Page | Next Page