Are Stocks Topping for Now?The S&P 500 has had a dramatic run, with gains in the last six weeks and 10 of the last 11 months. But will the run continue?
The first pattern on today’s chart is last week’s low around 5804. The index crossed under it and stayed there yesterday, producing a lower low on the weekly chart. Ending the week below that level could resemble moments like late-July or early April, when pullbacks followed.
Second, the index got rejected at or near highs on October 15 and 17. Those solid candles (marked with white arrows) may reflect selling pressures.
MACD also turned lower and prices closed below the 8-day exponential moving average, which could suggest momentum is slowing.
Next, the Nasdaq-100 stalled below its July peak. Does that reflect exhaustion among the biggest stocks in the market?
This lethargic price action in the big growth names contrasts with Treasury yields pushing higher. That may also be a risk to equities and risk assets in general.
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