Reducing treasury debt holding.

China reduced its holdings of U.S. Treasury debt for a second straight month in June while the holdings of Japan and Britain rose.
China's holdings fell by $24 billion to $843.7 billion, a decline of 2.7 percent, the Treasury Department said Monday in a monthly report on debt holdings.
Total foreign holdings of Treasury securities rose $45.6 billion to a total of $4 trillion, an increase of 1.2 percent.
A drop in foreign demand would lead to higher interest rates in the United States. The yield on Treasuries rises when fewer people invest in them

It would start with the U.S. government paying more interest on its $13.3 trillion national debt and then ripple through the economy. Consumer loans such as home mortgages and auto loans track the yields on Treasurys, so they could rise, too.
China is the largest foreign holder of Treasury securities. The $24 billion decline in China's holdings in June followed a $32.5 billion drop in May. China's holdings had hit a high for this year of $900.2 billion in April.
There are concerns that China could influence U.S. interest rates by rapidly selling off its holdings of U.S. debt. That could lead others to dump their holdings and result in a spike in interest rates.

The Dow Friday is Index/Options Expiry Day.

9:30am:--Bearish 20.0 points gap down.Economic jitters.

10:30am:--Shooting star near hourly bottom.Weak data on the jobs market and regional manufacturing reignited fears about the economic recovery.

11:30am:--Bearish engulfing.The market had focused too much on short-term jobs numbers.

12:30noon:--Bullish engulfing.The usual mid-afternoon technical rebound.

1:30pm:--Inverted hammer.

2:30pm:--Bullish engulfing near the MAV resistance line.

3:30pm:--Bullish inverted hammer holding above the MAV support.M&A news as an excuse for late-day buying.

4:00pm:--A small inverted bull.

A correction on Index/Options futures expiry day.The pullback tapers off at the low of the month. The overall mood of a market is worried about a weakening economy. There are no economic releases scheduled for Friday and the earnings calendar is relatively light.Earlier on the beginning of the month,despite all the negative economic news,the Dow still maintain its push into the positive territory.After the FOMC announcement,the slide begins.This is also a blessing in disguise for the Fed Reserve to unload their Citigroup shares in a staggering manner.They still have a lot to go and will pump in more bad news as they have their deadline to meet.