As I have been writing, technicals are clearly breaking down across the board. Things like Simon Property Group (SPG), American Express (AXP), KRE, SPX, you name it, all are showing signs of breakdown.
On the flip side, the short and ultrashort ETF technicals are showing clear signs of breaking out. That includes SKF, SDS, SRS, SZK, even the emerging markets ultrashort ETF, EEV. Analysts have been jumping all over the trendy emerging markets plays but they are getting beat up pretty good and that may very well continue.
All technicals for most equities and long etf's are showing clear signs of a breakdown. If this is a head fake, I am one of the fooled. This will not be a straight move down but a long zig zag move steadily down near 800. As we get closer to 800, I think we will see more volatility and depending on the economic conditions at that time, we could go down further or retrace most, if not all of the losses.