STOCKS HAVE WORST DAY SINCE JUNE 11 -- QQQ IS LEADING IT LOWER ON RISING VOLUME

NASDAQ 100 LEADS MARKET LOWER... The tech-dominated Nasdaq is leading the market lower today for the worst drop since June 11.   Today's negative combination of falling prices and rising volume suggests that there's more selling to come.  The Candlevolume bars in Chart 1 show the Invesco QQQ Trust (which represents the Nasdaq 100) losing -5% today.   The wider width of the last red candlevolume bar means that today's selling in coming on heavier trading.   The last red volume bar on the bottom of the chart shows the same thing (red circle).  That's a negative combination.  The QQQ is bearing down on its green 20-day moving average which is the first line of defense.   The extent of today's selling, however, suggests a deeper pullback which could reach the blue 50-day average and possibly its July intra-day lows (green arrow).  The 14-day RSI line in the upper box had reached the most overbought level since the start of the year.  The fact that it has fallen back below the 70 overbought line is usually a sign of more weakness.   It seems likely that the Dow and S&P 500 are also headed for a test of their 50-day averages (blue arrows on Charts 2 and 3).   What they do from there will help determine how serious the current pullback is likely to be.  The Dow's 200-day average which is near its late July low could even be tested.