By InTheMoneyStocks.com on May 9th, 2010 4:04pm Eastern Time
What a week for the the entire stock market! The S&P 500 Index (SPDR S&P 500 ETF (NYSE:SPY) lost $75.80 for the week to close at $1110.88. This was the worst week for the index since the bull rally began in March 2009. This past week we have heard numerous reports that the sharp decline was caused by a computer error or the so called 'fat finger' trader that may have clicked the billion share button instead of the million share button. In both cases market regulators do not know what caused the massive sell off on Thursday May 6th, 2010. It is surprising that the financial media will not simply call it a crash. After all, that is what it appears to be. We find it rather ironic that the low on that day of the sharp crash like decline was exactly the weekly 50 moving average on the S&P 500 weekly chart before staging a huge intra-day bounce. Technical trading once again proves itself as the dominant method when fear enters the market - and the technicals combined with the InTheMoneyStocks methodology called this sell off to the penny. This past weekly close caused a lot of technical damage on the charts and further downside is possible in the near term from the current pattern. The weekly support for the S&P 500 is $1075.00 and $1050.00.
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