The markets continue to hold onto the bulk of the gains from the rally last week, but the sideways action of the last few days is starting to look more ominous.  The $SPY probed the declining 200 day moving average (currently at 126.56) over the last few sessions and now that widely watched trend tool seems to have offered resistance again.

The more important levels of support for the markets to hold above (or at least not trade for more than 30 minutes below) are $SPY 124.50, $QQQ $56.00, $XLF 12.80, $SMH 30.50  Holding above these levels will keep these markets more neutral in the intermediate term, but we do have to exercise caution with all of these ETFs being below their 5 day moving average.

click chart to enlarge