Trendline Broken

Recent Market Happenings:

• Major trendlines are breaking
• Adv/Dec ratio spiked today
• Down volume taking over
• Huge volume flowing into UUP (US Dollar ETF)
• Huge volume flowing out of SPY (S&P 500 ETF)

To briefly discuss today's events. We broke the trendline early in the morning and as the day progressed and people began to realize the trend would not be saved by the close the sell volume started to pick up and indicies drifted lower during the day. The Dow only being down 100 was not enough to justify what happened in most stocks. Although there were some that held up, such as V and AMZN, most stocks were down 3-5% on average.

This is just a small list of many things we've seen the past few days that continue to support further bearish action. However, I'm beginning to lean towards a bounce, but the trend is now down. Any strength should be a selling opportunity. Tomorrow might be a non event, but Friday is the end of the week and the month. I should have some exciting monthly charts for the weekend.

Transports

Double top in the transports with a target close to its 38.2% retracement.

Airlines Index:

Here is the Airlines Index, XAL. I like following the airlines since they seem to have a mind of their own. They can be very profitable and often go up 100% on major market moves. The reason they are allowed to do so is because they go down pretty hard as well whenever the market turns sour. You can notice in the 3-Day chart above that they don't really have the normal swings/consolidation seen in other stocks. They typically either go up or down. Right now, they are picking up steam to the downside, I wouldn't be a buyer until 22 even if I was bullish.

LZ Update:

I'm still watching this one like a hawk. It seems every time I update its back to the same price. Lets watch that  red line. A close beneath there on Friday will be very bearish. We have plenty of time to get into this one, as it has plenty of room to fall.