The corner of Wall Street and Broadway, showing the limestone facade of One Wall Street in the background. (Photo credit: Wikipedia)Yesterday ended the worst week of the year on Wall Street. The DJ-30 lost 1.61% during the week. The SP-500 fell 1.99% and the Nasdaq Comp. dropped 2.24%. This behavior is a result of deterioration in the market since mid-March. At that time, the market seemed to run out of steam.The main technical indicators showed some deterioration, although the market did not fall significantly. However, this week found a market with no strength and fell heavily on Monday and Tuesday. Subsequently recovered during the next two days. The enthusiasm seemed to return to Wall Street on Thursday, when the market went up quickly, recovering much of the losses of the previous days.
However, Friday was like a bucket of cold water to the bulls. The market returned to drop significantly. But more significant was the way key. I mean the DJ-30 was unable to break the resistance level of SMA 50 days.
Usually, when a stock or an index fails to try to break a resistance level, takes the way back. If this happens in this case, we will see the market fall to the next support. In almost all cases, this level coincides with the SMA 200 days. As of today, that would represent an additional drop of 5.5%. There will have to see if the FED and his friends let a drop of this magnitude.
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