Today's Markets

-- California and Illinois are suing Countrywide Financial

-- Bank of American's purchase of Countrywide may pay for itself in tax savings

-- Barclay's Financial is getting $8.8 billion in fresh capital.

-- New Homes sales continue to drop



Notice the following on the SPYs daily chart:

-- Prices are back where they were when the Fed backed the Bear Stearns deal.

-- Prices are below all the SMAs

-- All the SMAs are headed lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below the 200 day SMA



On the QQQQs daily chart, notice the following:

-- Prices are below the 200 day SMA

-- The 10 and 20 day SMA are heading lower

-- The 10 day SMA has crossed through the 200 day SMA

-- Prices are below all the SMAs



On the IWMs, notice the following:

-- Prices are below the 200 day SMA

-- The 10 and 20 day SMA are both headed lower

-- Prices are below all the SMAs

-- The 200 day SMA is headed lower -- and never turned positive.

None of these charts is very bullish. The SPYs chart is turning more and more bearish.