Following the weak finish to last week, the major indexes remain above their 50 day moving averages, with higher highs and higher lows still in place. At the same time, a number of sector charts are looking vulnerable. First, let's look at some index charts:





So far, the 50 day moving average is providing support. Still, the short term trend is now down, and volume picked up on Friday. Given the mixed technical picture, caution levels should be high for traders on both the long and short side. From a fundamental perspective, we are highly likely to see lower prices in the not-distant future, even if we rally in the short term.

If the market starts heading higher, many commodity and energy names still look to be set up for a decent rally. On the flip side, financial and consumer sectors look like they might drag the market down.

- XLF: Financials look particularly weak.