We may be about to find out just how sick this market is.

When a member of a family catches a nasty cold it’s never fun. If the family is healthy then the cold stays contained, but we all know what happens when the cold is able to spread.

The strongest member of our Modern Family, Semiconductors (SMH) came down with the Flu on June 9th and has it not been able to shake it.

Since then the rest of the Modern Family had muddled along doing its best to bounce back after small dips.

The one exception has been Biotech (IBB) which has done a great job over the last several days counter balancing the family’s malaise. Its enthusiasm even pushed it out of an 18 month base.

On the surface the source of IBB’s strength appeared to be confidence and optimism over the prospects of favorable legislation being passed in the very near term.

Unfortunately, today’s delay of the prospects of a vote on new healthcare bill, demonstrated that not even the biotech industry can cure the conditions that make my earlier words, “favorable legislation being passed in the very near term” a series of oxymorons.

At the same time, SMH’s flu got worse today pushing it into an unconfirmed warning phase.

SMH looks like it’s going to need a long break, however, IBB which had a rough day as well, took its bad news in stride.

As I said earlier, on the surface the breakout seemed to be based purely on the power of positive thinking, but if it can hold over 305 in the face of big setbacks to its high hopes for near-term legislation, maybe there’s more to the breakout than meets the eye. Keep an eye on IBB

The Modern Family is not a healthy group, but they’re not all sick either, and they’re fighters. Last week’s lows are a good measure to determine when the malaise turns into a family flu.

S&P 500 (SPY) 242 now pivotal Under 240 not so good

Russell 2000 (IWM) 142.90 the number to watch. 140 pivotal. 137.50 support

Dow (DIA) 214 now resistance. 212 some support

Nasdaq (QQQ) 140 pivotal resistance. Under 137.70 trouble yet already in an unconfirmed warning phase.

KRE (Regional Banks) Tried to rally but could not close above the 50 DMA so still in warning.

SMH (Semiconductors) Unconfirmed warning phase making 83.37 pivotal

IYT (Transportation) 170 pivotal 168 support then under 165 trouble

IBB (Biotechnology) 308-310 should hold if good. Remember the 3-day blow off that I thought could have been the dramatic finish? Maybe.

XRT (Retail) 40.00 pivotal-amazing it held it today

IYR (Real Estate) Failed that channel at 81.50 so now ominous

XLU (Utilities) 52.65 the 50 DMA

GLD (Gold Trust) Like if holds 118 and clears 120

GDX (Gold Miners) Confirmed bearish phase. Couldn’t hold the 50-DMA but let’s see what happens at 22.25 area

XME (S&P Metals and Mining) Well outperformed but chart doesn’t look good enough to bite

USO (US Oil Fund) Yes green and if holds 9.00 maybe that’s it.

TAN (Solar Energy) 19.19 should now hold if good

TLT (iShares 20+ Year Treasuries) Turned around today and left an exhaustion gap at yesterday’s highs. 126 some support

UUP (Dollar Bull) Euro flew which I did give you a head’s up on last week. Now, 25.10 resistance