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Walt Disney (DIS – 27.5) is trading nearly six percent lower this morning, contributing 11 negative points to the Dow Jones Industrial Average (.INDU – 9721.2). Citing weakness in the economy, the Mouse said it is trimming its workforce by three percent, to the tune of 4,000 jobs. The downsizing will reportedly save the company between $350 million and $400 million per year.
Technically speaking, DIS has been struggling for quite some time. The shares have been trading beneath their 20-month moving average since November and have been continually struggling with resistance overhead in the form of their 10-week and 20-week moving averages.
Pessimism has been slowly building on the equity, as evidenced by Schaeffer's put/call open interest ratio (SOIR) for the shares. Over the past couple of weeks, this has increased to 0.54 from a reading of 0.47 as recently as March 19. DIS's SOIR now stands among the top 30 percent of all SOIR readings collected over the past 12 months.