First, on the intraday chart, we can see the divergence on the MACD and the RSI. In addition, the dynamical resistance had been broken:
On the daily chart, we can see the divergence in the RSI (parametrized at 7).
Finally, on the weekly chart, all the indicators remains in bearish situation:
Transports ($TRAN in stockcharts.com) is the sector that is supporting the rest of the indexes. It is showing an amazing strength. This is the sector to look closely and follow.
Finally, the SPY is still over the 200 SMA. During the last 3 days, it showed weakness to the downside. I think the reason is that the overall traders and blogs are expecting big moves downward. Then, Mr. Market enjoys making them loose their patience and doing the opposite.
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