This week starts with the S&P 500 (SPY  ) dangerously close to breaking the all important 200 day moving average. This is the main, and most important focal point for technical traders right now and the SPY is currently sitting right on it. Though Monday was a strong reversal off the popular indicator, the fact that Tuesday did a complete 180 has many feeling like this time we break right through.

The Nasdaq 100 (QQQ  ) has been the weaker of the major indices this week but it to only has a little breathing room until it hits the 200 day moving average. With weakness in the semiconductor space, along with big tech, the QQQ has sold off over 3% so far. Each down day this week the QQQ has been the leader to the downside as investors continue to shift out of the tech space.

The metals and mining (XME  ) sector continues it's push to lows this week as well. For the last few weeks the XME has accelerated it's downtrend leading many to believe that new lows are on the horizon. Wednesday the 200 day moving average was breached in what may be a first look into what the markets as a whole are about to do. Since hitting a high back in January the XME has lost nearly 20%.

As the market weakens, bonds have enjoyed a pop. The iShares 20 year (TLT  ) has pushed to new, two month highs as traders move to safety. When the markets suffered their last round of weakness in February the TLT did not see the same level of participation that it's seeing now. This has many traders thinking that market participants are about to throw in the towel on the broad markets. Meaning, this time they think is different than last.

Finally, volatility (VXX  ) has seen an obvious pop this week with gains of over 10% so far. Traders have their eye on the prior highs around $56.50 which is likely to get hit should the markets break through their 200 day moving averages.