US Stock Short And Intermediate Term Trends Have Change From Up To Down

U.S. stocks dropped sharply this morning at the open,  major indices fell by an average of 1.5% now. Portuguese lender Banco Espirito Santo 's  huge net loss in earning led to its stock dropped a record 50 percent on Thursday's trading. Eurozone inflation rate slowed to its lowest level in nearly five years and brought about the economy is too weak to push price growth concerns. Argentina debt defaulted the second time in 12 years and may led to financial crisis. EU and the U.S. strengthened Russia economic sanctions has led to concern that the EU economy will also be hurt. These negatives all contributed to sharp losses in European stock markets . Germany's DAX index fell by nearly 2%. In the U.S., July Chicago purchasing managers index came in at  52.6 much lower than the 63.2 consensus. Yield of the 10 year treasury continues to rise today reflecting worry that the Fed may hike rate early.  In addition to all the above mentioned negatives,  former Federal Reserve Chairman Alan Greenspan said after a long and big recovery in the stock market, investors should expect sharp pull back some time. The US stock market is under tremendous down side pressure and down turn likely continues. Technically,  the Dow and the S & P 500 have dropped below their 50 day moving averages while the Russell 2000 fell below its 200 days moving average. U.S. stock market's short and intermediate term trend have changed from up to down. Dow will likely fall toward its 200 days moving average 16316 level near term.  Dow, Nasdaq, S & P 500 and Russell 2000 near term supports are 16641,4360,1910 and 1100 respectively .