As most broad indices are experiencing a 20- & 50-MA crossover the common reaction to a technical bearish crossover is for price to revert back higher to gauge whether those averages are accepted or rejected. Failure to reclaim the 50-day MA in the SPY would be perceived as weak, whereas recovering this technical level could prove this to be merely a corrective phase before fresh highs are achieved.
It is important to keep the perspective of the weekly chart in mind as well. Price is very much within support and looks to be setting up a 2c-2d long setup.
The QQQ for example has registered a fresh momentum low
but in the context of the weekly that fresh momentum low looks like it may attract the fade-players. Interestingly enough, the QQQ could lose another 7% and have very solid support.
The DIA is still safely inside this sideways price channel
and in the context of the longer-term picture, a mere 8.9% off of all-time highs
IWM is holding support (on a buy divergence)
and 8.7% off of all-time highs though I'll admit, this chart looks most fragile than the others
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