Tale Of 2 Markets

The Nasdaq 100 (QQQQ) broke key support at 46 yesterday and is seeing continued weakness as the Semiconductors (SMH- inset) lead tech shares lower today. The best potential support level for the Qs appears to be near 44.25. Short term the Qs seem extended to the downside and 46 is where resistance is likely to be found on any strength.

The SPY continues to show relative strength as it maintains its range of 126.50-130.50. Without the resiliance of the financial stocks (XLF-inset) the support at 126.50 would be in jeopardy of breaking.