Investors Fleeing High-fliers

The market sell-off continues as investors continue to exit recent high-fliers. Small-caps and tech stocks have been especially hard hit as shown by the break down in the Russell 2000 (RUT) and the Nasdaq, both of which have fallen below their 100 day moving averages (dma) as well as major support levels (1150 for the RUT and 4100 for the Nasdaq).

The other major averages are faring a bit better but they're still on shaky ground. The 1850 level couldn't contain the S&P 500 (SPX) and it appears that it's on track to test minor support (as well as its 50 dma) at 1840. The Dow Transport Index (DTX) was able to hang onto minor support at 745, but if that doesn't hold (and the technicals are indicating that it won't), it could easily sink to its 50 dma at 740. The VIX popped over 15 putting the bears firmly in the driver's seat. Considering the strength of today's move along with the technical breakdown in the Russell and the Nasdaq, it appears as if the bears will be able to stay in control for at least a little while. A VIX move over the 20 mark, though, could signal that the end of the bears' reign.

Here are some key support levels to watch:

SPX: 1840, 1825 (also its 100 dma) 
DTX: 740 (50 dma), 700 
DJIA: 16200, 16000 
Nasdaq: 4000 
RUT: 1100 (200 dma)

1:05 pm ET: Intraday support/resistance: 

SPX 1840/1864 
DTX 741/748 
DJIA 16200/16420 
Nasdaq 4046/4137 
RUT 1127.5/1150.5 
VIX 14.6/16.3 (VIX rising over 15 is bearish) 
Trin range: 0.6 - 1.4 (rising Trin is bearish) 
Average VWAPs: +25/-202 (extremely bearish) 

None.

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