On Tuesday, the market rose above yesterday's highs, but then fell and consolidated over the noon hour. In the afternoon, the market continued its decline and closed below yesterday's low. The Nasdaq closed -16 points below its 10 SMA, but the S&P managed to close +3 points above its 10 SMA.

Volume was higher today on all three major indices. The Nasdaq closed down -27 points (-0.63%), the S&P lost -9 points (-0.51%), and the Dow fell -67 points (-0.41%). Declining stocks outpaced advancing stocks by 2 to 1. Down volume was stronger than up volume by 2.5 to 1.

While the market may only be making a simple pullback, the possibility of a market correction is elevated. The market closed today near its lows, and this raises the likelihood of lower prices in the morning session on Wednesday.