Figure 1 is a weekly chart of the S&P Depository Receipts (symbol: SPY). The red and black dots are key pivot points, which is a concept that I have developed that defines the best areas of support (buying) and resistance (selling).

Figure 1. SPY/ weekly

Several weeks ago the SPY broke above the key pivot point (or resistance level) at 133.82; see the red arrow on chart. In my book, a close above a resistance level would be a breakout. However, the breakout failed and prices are now back below the resistance level at 133.82. Failed breakouts are rarely a good thing, and often portend lower prices. Support is at the rising 40 week moving average (obvious, knee jerk reaction). The next key pivot point support comes in at 120.79.

Figure 2 is a weekly chart of the PowerShares QQQ Trust Series (symbol: QQQ). The key pivot points are shown, and the failed breakout is at the 58.46 level. This is now resistance. Support comes in at the nice round number of 50. The rising 40 week moving average may offer some "comfort" to the bulls.

Figure 2. QQQ/ weekly