Two Charts for Good Perspective This Afternoon

Stock are broadly coming in here, with Nasdaq and small cap weakness erasing some of the progress bulls made yesterday, especially in the IWM (ETF for the small caps in the Russell 2000 Index). 

Headed into the heart of the afternoon, we are keying off two main charts for perspective as to how much selling may be to come.

First, the QQQ, ETF for the top Nasdaq stocks, is back down to support over the last week, seen on the 30-minute timeframe, first chart below. If this is nothing more than yet another shakeout leading to a new, surprising leg higher then the morning bounce off the lower light blue line should be about the extent of the pullback. If we dive below there, I would expect some anxiety to set in with recent dip-buyers.

In addition, to update our context of the VIX ETF from last week, the second chart is of the VXX daily timeframe. It is a rather simple text, but note how VXX is bumping its head, again, at the 20-day simple moving average. Holding above that orange line should coincide with the QQQ breaking short-term support trend, too, and would also be a tip-off to become more cautious. 

More in my usual Midday Video for Members, coming up.