DOW LEADS MARKET SELLOFF -- SMALL CAPS BREAK CHART SUPPORT -- 10-YEAR YIELD BREAKS 200-DAY LINE -- ENERGY AND FINANCIALS LEAD DECLINES

DOW SHATTERS 50-DAY LINE... Stocks are opening the week sharply lower and on the pace for one of the year's biggest losses.   Although all market averages are under pressure, the Dow is leading the decline.  Chart 1 shows the Dow Industrials plunging below their 50-day average.   The next level of potential chart support is at the mid-June low.   Small caps have been declining lately and issuing warning signals of their own.   Chart 2 shows the Russell 2000 iShares (IWM) trading below their mid-May low.  That's a negative sign for them and the rest of the market.  All eleven market sectors are the the red today with the biggest losers in economically-sectors like energy, financials, industrials,  materials, and discretionary stocks.   A big drop in the price of oil is pushing energy stocks sharply lower.   A sharp drop in bond yields is weighing heavily on financial shares.

10-YEAR TREASURY YIELD BREAKS 200-DAY AVERAGE...Bond yields are falling with stocks today in a flight to the relative safety of bonds.   Chart 3 shows the 10-Year Treasury yield falling below its 200-day moving average to the lowest level since February.   That's hurting financial stocks.   Chart 4 shows the Financial Sector SPDR (XLF) threatening its June low.   A big drop in the price of oil is punishing energy shares which are the day's weakest sector.   Chart 5 shows the Energy SPDR (XLE) falling to a three-month low.

Chart 3