Zoltar from Big is correct once again the market was up but banks and other financials were down. The big leaders of the banking world were down over 1% to 3%. This should throw a big RED FLAG up to anyone long. Remember the market can't rally without these stocks. If they are down the market should follow, typically the have been leading the move downward a day early. Here are a couple of post detailing on watching banks and financials.
Today Financials were weak throughout the day, look at GS it trended down the entire down and in the afternoon the market completely diverged from it but the market eventually sold off towards the end.
If GS is still weak in the next few days watch the 87.60 level of support as this was the low before the bounce on Monday. If this level breaks the October lows will be tested.
Below is a chart of SPY and XLF, notice the last two times XLF dropped lower then the market. Financials should always be watched as they are a great predicator of the market.
On XLF the key level throughout the last few months has been 12.03 it has dipped below and above it but this has remained home base for it. If XLF should not be able to hold this support it should be a good indication that market may be heading lower.
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