Note on these first two Nasdaq charts below how this index is soaring to new highs day after day: NDX QQQ Key Level - a break below which its likely a significant collapse will ensue. Now, let's take a look at some of the prominent shorts taken in this service over the past few weeks, SQ, IWM and TGT (Pro Service): SQ IWM TGT (From PRO Service) SQ belongs in a sector, the financials, that is showing signs of breaking down across the board. TGT is from the consumer retail which is itself going through its own little bear market. The deterioration in structure in the financial stocks is still early, meaning it can be a false alarm, or just as easily be a precursor of much more downside to come. If the latter, we will know soon enough. Here are some prominent financial sector charts: ------------------- What's Next? ------------------- Look for further deterioration in these Financial Sector stocks to put pressure on the general market, eventually bringing down the handful of technology darlings that is keeping Nasdaq propped up. Note: Fresh Sell Signals are appearing in GS, MS, WFC, and even XLF itself. A Sell in JPM looks imminent. A slew of Sep put recommendations will follow, as soon as early next week, to add to SQ and IWM as set out above.
