Click on all images for a larger picture.
Wow -- what a bloodbath. Let's see what the charts say:
The SPYs broke though lower resistance and the downward sloping bottom of a trading channel. Also notice that prices are below all the SMAs, the SMAs are moving lower and the shorter SMAs are below the longer SMAs
On the IWMs (Russell 2000), notice that over the last few weeks we've had three gaps moving lower. Bottom line -- prices are in free fall right now.
On the DIA notice that we've had four gaps down since the first of the year. Notice that today's action was an extreme downside move -- big time.
All of these charts are bearish. Hell, all of these charts show a market in panic selling mode. There is nothing good here. Nothing at all.
For a really interesting post, see this post from Corey over at Afraid to Trade.