Stocks endured the second week of loss as investors get nervous about the timing of Fed's tapering of QE policy and the appointment of Fed chairman Ben Bernanke's successor. S&P 500 index closed at 1655, down 2.1%, Dow Jones Industrial Average lost 2.23%, and Nasdaq composite decreased 1.57% for the week.
In the daily chart, S&P 500 index has come down dramatically, with sharp sell-off on Thursday, to test its 50 day moving average and 1650 support level. We may see some rebound at this level as stocks are in the short term overbought condition but MACD in the chart suggests that we still have some selling to go. On the down side, the next logical support is 1600 level for the S&P 500 index.
Daily Chart of S&P 500 Index
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