TECHNICALS-QQQQ

Markets continue to trade mixed with the market internals flat with metals oils and biotechs leading.

Just a heads up that the QQQQ may be getting a sell signal here as the ETF is bouncing of its downtrending 90 day SMA at the 38.6 level.

The VXN volatility index is trading more than 10% below its key 10 day SMA at 17, so another sell signal. Just a warning that the VXN signals are less reliable than the VXO/VIX signals as the index is much more volatile. The 5 day RSI of the VXN is also way oversold with another Larry Connors sell signal at 22.

Another tell that is giving me comfort in these sell signals is the action in the financials. Pull up charts in the BKX and XBD and you will see what I mean.

Bob Pisani with the key observation that big caps are outperforming small caps as the SPX is slightly higher while the IWM is only slightly higher. Hey Bob, the DJIA is lower unless of course there are no big caps in that index.