Small caps have been the 800 pound gorilla in the room as the Dow achieved a new all time high. A stronger dollar would certainly have more of an impact on them of course as they tend not to have the cash reserves of their larger mid-cap and large cap cousins. Lack of growth in the EU and China certainly do not help matters.
What some pose as a possible double top, could also be a bullish butterfly pattern beginning to emerge. It's downside target would coincide quite nicely with it's rising 200 week simply moving average.*and* keep it within it's long term channel since the 2009 low (a buying opportunity) and then the reversal would kick in as the market would reverse (trapping shorts) and resume it's move upward.
BTW one must note that no support has truly broken yet. It is entirely possible tomorrows opening drive low is bought and we begin to ramp up once again. Just pointing that out.
The inverse ETF, $TWM, is nearing triangle resistance, which if broke, would give it a target of $53-55 initially.
What is also interesting is that TWM volume in 2014 has been larger than at any time since the ETF's inception. Even heavier than with the correction in 2011. Funds hedging their bets in large size? I wouldn't be surprised.....
Just a thought. Only time will tell.