Bears won the dog fight from the bulls and the agnostics today.

However, was this the dip to buy or the start of a way more major selloff?

Semiconductors SMH might have the most interesting chart pattern and should hold the key to the next move in the overall market.

(Click on image to enlarge)

On November 4th, SMH gapped higher and since it was a new all-time high, that made the pattern a clean breakaway gap.

Since then and until today, that gap held.

What makes today’s move interesting, is that we now have a potential island top.

If the gap to 130.60 (the low until today) is not filled, then one can assume that more selling is in store.

The 50-DMA is the blue line at 126.68. That could turn out as support.

However, if SMH cannot rally above 130 or so in the next 2-3 days, then bears and many agnostics will have sunk their sharp teeth into the bulls.

S&P 500 (SPY) 312 pivotal resistance 303 major support

Russell 2000 (IWM) 160-160.46 resistance and 157.74 support

Dow (DIA) 279.25 pivotal resistance and 272 support

Nasdaq (QQQ) 203.25 pivotal resistance and 196 underlying support

KRE (Regional Banks) 56.00 pivotal resistance 54.25 major support

SMH (Semiconductors) 130.60 resistance and gap fill it needs, 127 support

IYT (Transportation) 188.25 key support and if fails, will impact everything 190 to clear

IBB (Biotechnology) 116.30 key support 120 resistance

XRT (Retail) 44 resistance. 43-43.35 key support