2/25 The Spy has violated the 145.35 level of support on the 15 and 30 minute charts (see 1st chart below), in doing so a Falling Wedge pattern is forming. Key support on the Spy now stands @ the 144.40 to 144.50 area. The Spy had a failed breakout on Thursday that resulted in lower highs and lower lows forming on the 15 minute chart. This should put us in a defensive posture, but until the rising trendline on the daily is broken in conjunction with declining 50, 20 and 10 day MA's, along with support violation, this market remains in tact. If the market does turn bearish we will know it by this criteria, but lets not be premature in shorting this market. Many traders are calling for a top here, & that could eventually occur, but as for right now the market is still technically sound. On the other hand our failed breakout on the Spy during Thrusday's session could lead to something more significant with now three lower highs, lets continue to watch for clues. We may pull back to support on the Spy as to allow for a backtest on the Nasdaq and the Sox. The Nasdaq broke out of a Symmetrical Triangle last week and could now backtest to the 2496 area. The SMH broke out of a Symmetrical Triange that began during our summer lows. During a backtest the SMH could either pullback to gap support at 35 or fill the gap to the pivot point to the 34.50 area on the 60 minute chart (7th chart below). The SMH Triangle measures 5.27 points, with an objective target near resistance at the 40 dollar level. The Q's broke out of Triangle last week and have now formed a pennant on the 60 minute chart (4th chart below). We closed just below resistance @ 45.40. The Q's could backtest next week or test resistance breaking to new highs. The Nasdaq which has lagged could now take leadership. If you take an entry point during the Q's pennant have a tight stop in place, they may backtest to support. Posted information is for educational purposes only and is not a recommendation to buy or sell any stock. http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1926808