The market action is "fugly" out there this morning. Several issues gapped below key support, and this is never a good sign.

A daily chart of the S&P Depository Receipts (symbol: SPY) is shown in figure 1. The gold and red dots are key pivot points; key pivot points are the best areas of support (buying) and resistance (selling). This morning SPY gapped below the key pivot at 136.55, and this area becomes resistance. 1300 on the SP500 is within sight.

Figure 1. SPY/ daily

A daily chart of the SPDR Gold Trust (symbol: GLD) is shown in figure 2. Yesterday, the support level at 158.20 held, but today, prices gapped below at the open. Look for prices to trade to 151.96.

Figure 2. GLD/ daily

Here is a gap open from 2 days ago. This is figure 3, a daily chart of the PowerShares QQQ Trust Series (symbol: QQQ). 65.08 was support and it is now resistance. The support level at 64.09 appears to be cracking as well. If so, watch for prices to trade to 60 and the much heralded 40 week moving average.

Figure 3. QQQ/ daily