The SPY-SPDR ETF (AMEX: SPY), the proxy for the S & P 500 faltered on Friday, breaking below the key support of its 50-day moving average.

The one day break reversed the hard earned gains of the past two weeks, suggesting that stocks are being held by weak hands, not what you want when a market is trying to reverse a down trend.

So where do we go from here? Unless something changes, it looks as if we're heading lower. How much is anyone's guess as usual. Support is somewhere around 126-130.

The problem, though, is that the market is starting to feel weaker, as earnings reports are increasingly disappointing. And why not? Money is very tight, and there are signs that it could actually get tighter despite the Fed's massive easing and other alchemy through the Discount window.

In fact, as we looked through the Fed's most recent Beige Book, we noted an ominous passage: "Boston and New York mentioned that some manufacturers are experiencing slower payments from their customers. All Districts commenting on the near-term outlook mentioned caution or concern on the part of at least some segments of manufacturing. Boston, Philadelphia, Kansas City, and San Francisco indicated that some firms are adjusting their hiring or capital spending plans downward."

That was published on March 5, nearly six weeks ago, clearly enough time for the phenomenon, if it has persisted to be well entrenched. If that's the case, it means that cash flows for corporate entities might be starting to slow significantly.

That's a new worry, that in our opinion has yet to be factored into the equation.

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Doctor Joe Duarte's Market I.Q., offers subscribers a unique blend of intelligence, market commentary and trading strategy. Duarte's daily articles, and news summaries offer recommendations and analysis for ETFs, and individual stocks in the technology, health and biotechnology, and energy sectors. Doctor Duarte is a writer, and an emerging futurist, with a diverse background, and a growing audience. His combined expertise in health care, energy, and the effects of politics and global intelligence on the financial markets offer a unique blend of insight and information to thousands of active investors and political and intelligence aficionados around the world on a daily basis.

He is the author of four books: "Futures And Options For Dummies," "Successful Energy Sector Investing," "Successful Biotech Investing" and co-author of "After-Hours Trading Made Easy."

In early 2001 Dr. Duarte in "Successful Energy Sector Investing," correctly predicted that Venezuela's political problems could lead to an energy crisis in the United States.

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He has also appeared as a weekly guest on Market Mavens Radio, has logged appearances on KNX radio in Los Angeles, Financial Sense.com radio, and Wall Street Radio.

One of CNBC's original Market Mavens, Dr. Duarte has been writing about the financial markets since 1990.

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