IMPORTANT SUPPORT LEVELS ARE BEING BROKEN

S&P 500 BREAKS 200-DAY LINE...Last week's message showed the S&P 500 testing important support lines which included its 200-day moving average.   Those support levels are being broken to the downside.   The daily bars in Chart 1 show the SPX falling below its 200- day line (red arrow).  In addition, it has also broken the rising support line drawn under its October/March lows (black arrow).   The SPX has also fallen below the peak formed during February just below 4200 (red circle).   All of which suggests that stock prices are heading lower.   A lot of other support levels are being broken.

SMALL CAPS HIT NEW YEARLY LOW...Chart 2 shows the Russell 2000 iShares falling below their previous low formed during the spring and appear headed toward their low formed last October.   The S&P 500 Equal Weighted Index has also fallen to the lowest level in a year.   The vast majority of individual stocks are also in downtrends.

MOST S&P 500 STOCKS IN DOWNTRENDS... Here's another important support level being broken.   Chart 3 shows the Percent of S&P 500 stocks above their 200-day averages falling to 28% which is the lowest level in year.   That means that nearly three-quarters of SPX stocks are trading below their red lines.   Various measures of market breadth have been sending warning signals that the vast majority of  stocks haven't been keeping up with with the S&P 500.   This week's selloff in previous market leaders has contributed to this week's breakdown.

LEADERS TUMBLE... The major market averages have been held up by a handful of large stocks in the communication and technology sectors.   A tumble in those former leaders has contributed to this week's selling.   Charts 4 and 5 show Meta and Alphabet selling off sharply and in heavy trading.   Chart 6 shows Apple falling below its 200-day average.   Those are some of the stocks that had been holding the market up.  Not any more.