Today's bearish action was strong enough to permit the formation of a death cross (when the 200 day moving average rises above the 50 day moving average) in the small-cap heavy Russell 2000 RUT. While one's market outlook shouldn't be solely based on one technical indicator, prudent investors should not ignore it, either. The RUT has been in a down-trend since the beginning of the month and after breaking today's minor support level at 1140, a drop to 1120 seems likely.
Today's notable losers:
1. Commodity etfs breaking support levels: Timber CUT; Water (PIO, FIW); Steel SLX; Palladium (PALL, SPPP); Emerging markets (VWO, EEM, PXH); Oil services (OIH, PXJ, XES); Aussie $ FXA.
2. Sector etfs breaking support levels: Consumer Discretionary XLY; Homebuilders XHB; Insurance KIE; Shippers SEA.
If you're looking to take some bearish positions, consider looking into the above areas for ideas.
One other note: To all of you Elon Musk fans, note that Tesla (TSLA, $250) and SolarCity (SCTY, $60) are both testing major support levels. A break below would be a strong indication that further downside is in the offing.
