The SPYs did OK today until right before the close. Then they broke through support on heavy volume. End of the day selling is an indication of trader's nervousness; they don't want to hold any positions overnight because they are concerned about the news that might come out between the market's close and the market's open. That also indicates they have a hair trigger; they are more prone to sell.
On the 5 day chart, note two things.
1.) We have had two days in a row with heavy, end-of-the-day selling.
2.) The market broke through the 145 level which was providing some short-term support.
The SPYs went further below the 200 day SMA level today -- never a good sign for the market.
The 5-day QQQQ chart shows a strong, three day downtrend in place. Also note we have had two days in a row with heavy, end-of-the-day selling.
The QQQQs are approaching the 200 day SMA, a key level of support.
Also note that previously mentioned high fliers also fell. Google, Apple, Research in Motion, Dry Ships, Intel were all down again today.
In other words, today furthered the damage done on Friday.
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