All three charts - the SPY, QQQQ and IWM say one thing. Traders are selling hard. The market has no upside momentum at all. The only rally over the last 10 days was caused by a rumor, not a hard piece of information. In the last 10 days, the SPYs have lost 8%, the QQQQs have lost 7% and the IWMs have lost almost 11%. However, the news gets worse.
Notice the IWMs are coming out of a triangle consolidation heading lower. Today they printed a long bar and are just shy of key technical support a bit about 64. If they move through this level and confirm the trend lower with another day of downward moves, then this index is heading lower.
Adding downward pressure to the markets is the QQQQs crossing the technical low established in the last week of January. This is the second average that has established strong downward momentum.
The SPYs have broken out to their trading range and moved lower as well. They are about 2 points or 1.5% above their technical support level. With the QQQQs and IWMs also moving lower the SPYs have a lot of downward influence.
