Last Friday, Wall Street´s main indexes tumbled during the session´s last hour. This fact involves a higher level of technical deterioration.
So Far, North American Stocks Markets have avoided the contagion from other economies, mainly European countries, where a wide range of Indexes have collapsed, especially after the increasing financial problems that Greece has revealed in the last weeks. The credit rating downgrades that some Mediterranean countries such as Portugal and Spain received from Standard &Poor's aggravated their poor technical situation.
The Nasdaq Composite is going to play a key role this week. The technological Index has soared a 100% since March 2010. It currently keeps its primary rising trendline. By contrast, the secondary upward tendency could be threatened if eventually the support of 2.450 points is broken down.
The potential head-and-shoulders pattern that prices are starting to develop is a second negative element. At the moment, its technical situation is not dangerous enough, but if the neck line (wich coincides with the level of 2.450 points) gets lost, this movement could jeopardize its short-term rising structure.
The recommendation is to sell if prices break the level of 2.430 points. Stop loss in 2.535 points.
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