A closer look at the charts show the 20-day moving averages are in play and have been holding, for the most part, over the past 3-straight sessions. The small-caps and the blue-chips, however, have been lagging over the same time frame and were unable to hold this key level of support.
The Russell 2000 tanked 2% following the pullback to 1,536 and session low. Mid-February and upper support at 1,540-1,525 was breached and failed to hold with risk to 1,500-1,475 and the 50-day moving average on a move below the latter.
The S&P 500 fell 0.7% after tapping an intraday low of 2,768. Near-term and upper support at 2,775-2,750 failed to hold with a close below the latter and the 200-day moving average being a bearish development.
The Nasdaq tanked 0.9% after trading to an intraday low of 7,499. Near-term support at 7,525-7,475 was split on the close just above the 7,500 level with a move below the latter and the 200-day moving average being a bearish signal.
The Dow dropped 0.5% following the midday back-test to 25,633. Current and upper support at 25,750-25,500 was tripped and failed to hold with risk towards 25,250-25,000 and the 200-day moving average on continued weakness.
Materials were the only sector that showed strength after rising 0.2% while Utilities finished flat.
Healthcare and Energy led sector weakness after tumbling 1.5% and 1.3%, respectively. Industrials and Financials were lower by 0.9% and 0.6%.
I hope this helps you prepare for the trading day. Make it a great one!