The Fight is On

It may very well be the case that was spooked markets most today was the inability of the Nasdaq and growth stocks at-large to bounce in sympathy with the intraday relief in TLT earlier in the session. Instead, QQQ slumped to fresh session lows. And as we wok through the final ninety minutes of the session the Dow is now flipping red, erasing triple digit gains. 

I charted the Dow both with Members and on my main Twitter account earlier, illustrating a potentially bearish diamond topping pattern in place. The essence of the Dow strength from earlier had been Boeing plus the banks ripping higher. 

However, should bulls lose their grip on the banks even for a bit, it may be enough to full more fear and panic in the broad market for a washout. 

Specifically, as we can see on the XLF ETF daily chart for financials, below, including Dow names AXP JPM GS, we have a bear RSI divergence (bottom pane) to price on the latest new high today. We know RSI divergences can be flimsy at times as signal as opposed to noise. But the point holds true that bulls most likely need to fight off a correction in banks due to the timing of this onslaught of selling in tech. 

Again, with tech ignoring intraday bounces in bonds, it may be the tell of what the market wants to do near-term: Wash out longs.