The overall trend in the major indices is downward.

Though we’ve had small rallies, our last jump in price was minor and right into resistance.

Specifically looking at the QQQs we have reached a key support level in which many traders are watching for a price break.

However, when it comes to Nasdaq’s breaking point, we need to keep the big picture in mind since we’ve seen the market turn around quickly.

The chart below shows the 4 major indices including the Russell 2000 (IWM), Dow Jones (DIA), S&P 500 (SPY), and the QQQ.

Each has a black line drawn at its key support level.

Though QQQ closed right on its $318 support on Monday, notice that all the other indices still have space between their support lows.

This makes a breakdown in the QQQ tough to read as the other indices are currently holding above their key support levels.

Something else we should note is that the Fed is expected to raise rates by 25 basis points in a couple of days.

While this has been known, the market still could throw a fit, especially if any unknown changes surface in the FOMC announcement on Wednesday.

Therefore, with a tough trading week ahead, if the QQQ is going to break down further, watch for other indices to follow and break their key support levels as confirmation.

(Click on image to enlarge)

ETF Summary

S&P 500 (SPY) 410-415 support.

Russell 2000 (IWM) 188-193 support.

Dow (DIA) 322-326 support.

Nasdaq (QQQ) 318 support.

KRE (Regional Banks) Needs to hold over 69 the 200-DMA.

SMH (Semiconductors) Broke 239 support level.

IYT (Transportation) 243-245 support area. Resistance 264.

IBB (Biotechnology) 118 support.

XRT (Retail) 78 resistance. 72 to hold.

Junk Bonds (JNK) Breaking down. Watching to find support.

SLV (Silver) 22.84 next to hold.

USO (US Oil Fund) 72.27 pivotal.

TLT (iShares 20+ Year Bonds) Watching to find support.

DBA (Agriculture) 21.56 to hold.