Sellers stepped it up today and were able to break some important technical levels. The Nasdaq and S&P 500 both broke support of their January highs. The S&P also broke a trendline and its 50-day moving average. These moves came on increasing volume, making today a distribution day -- the fifth one on the Nasdaq since March 15. About the only thing positive I can say about this action is that (I think) it takes a bit of the pressure off of earnings season. I never like to see stocks at or near their highs ahead of earnings reports. That always seems like a recipe for disappointments. Nevertheless, earnings are going to dictate the tape for the next couple of weeks. All this technical analysis mumbo jumbo will likely take a back seat...
Here are charts of the Nasdaq and S&P:
