High Yield ($HYG) and Small Caps ($IWM) Still Problematic for Big Cap Indices ($SPY)

Both the High Yield (HYG) and the Russell Small Cap Index (IWM) ETFs have broken down from major multi-month top formations that argue strongly for a similar break down in the Big Cap SPY, which so far remains above its key breakdown zone 182.50-181.90.

That said, with the heart of earnings season directly ahead, we will soon find out if the SPY companies can withstand any pressure at all from a "profits slump" or profit margin deterioration.

Judging from the action in iShares iBoxx $ High Yield Corporate Bd (HYG) and iShares Russell 2000 (IWM) recently, investor tolerance for mediocre or disappointing S&P 500 quarterly results figures to be minimal at best.