Massive Rout Spells Trouble For Wall Street (The Tea Party Recession creeping closer?) [View All]

[Purveyor]

(Reuters) - The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.

The broad-based index fell for a seventh day and crashed through its key 200-day moving average in an ominous sign for markets. The seven days of losses mark the longest losing streak since October 2008.

"It is going to be a long week," said Jim Maguire Jr., a NYSE floor trader at E.H. Smith Jacobs. "The bid is not here in the market."

The selloff accelerated into the close as volume jumped well above average. The fall was broad-based, with four stocks falling for every one rising on the New York Stock Exchange.

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http://www.reuters.com/article/2011/08/02/us-markets-stocks-idUSTRE7701KB20110802?feedType=nl&feedName=usbusinessearly