The [[SPY]] is hitting the lower boundary of a downward sloping channel. A break lower beneath the channel line will change the current, rather benign downtrend into something decidely more serious.

Of course, my money is already bet on a bounce from here. A run to the upper channel line would be nice, but I am doubtful that the index will muster the strength for such a move.

The [[DIA]] may have already broken beneath its lower channel line, but I have drawn the lower channel line to the lowest low. If one goes back to the low of 6 days ago, and draws the line through it, Friday’s action looks like a break. Regardless, the Dow Jones’s slope is getting steeper. Note the bullish divergence in the MACD. Like the SPY, my bet is on a short bounce from here.

The Q’s are rolling over and look to me like a great opportunity for shorting. From here, if the ETF only retraces 3 points of its move to the lows at 41.00, I’ve made 6%. Still, if 47 holds for another few days, the [[QQQQ]] may offer a better short entry.