A Couple of Thoughts Ahead of the Open:

Today is options expiration day.

Our charting service has been down for the last 2 days and just came up. So a quick look at the various sector indices before the open.

1. The Dow Industrial Average looks to be moving lower.
2. The Banking indices are under pressure.
3. The Dow Transports closed yesterday at 5,349.86 on its 40 day moving average.  The index is showing continued weakness and could test 5,060.59 on a closing basis.
4. The NASDAQ 100 Index ‘NDX’ hit is 40 day moving average yesterday.  This may provide support, but I doubt it.
5. The S&P 500 ‘SPX’ closed at 1,308.87 yesterday.  This is below its 40-day moving aver.  I think there is a good chance the ‘SPX’ could move lower and test 1,265.42 on a closing basis.
6. The Amex Broker/Dealer Index ‘XBD’ closed at 102.90 yesterday, setting a new 9-month low yesterday and looks to continue to move lower.
7. The S&P Insurance Index ‘IUX’ looks to be under pressure.
8. Keep an eye on the Philadelphia Semiconductor Index ‘SOX’  It could break support today.
9. The high tech indices are under pressure.

Overall,  the broad market looks to be continuing to move lower.