We finally got another day of selling in this five week rally. One positive for the bulls is that volume was on the light side today. The Nasdaq actually looks like it could find support right in this area since it's right on its trendline. Still, for swing trades, I'd rather be a buyer once stochastic reaches oversold territory.
This following chart is the % of S&P 500 stocks that are above their 200-day moving averages. It's showing a bearish divergence with the S&P. (Although according to 'How Markets Really Work' that divergence may not be a big deal.) Brett Steenbarger notes a similar divergence in his weblog today based on the current new highs being well less than the number of new highs made in July:
