The Market Forecast for the S&P 500 Index is showing a mature and tired intermediate posture with an over-extended near-term line.
This pattern suggests options expiration may be prime time for at least a near-term pullback if not more – most likely after expiration.
The MACD has crossed below its moving average and the Stochastic is forming a bearish divergence.
The S&P 500 is nearly 3% above its 30-day simple moving average and starting to decline. A break below $335.50 on $SPY and jump in $VIX to rectify sizable gap between implied and historical volatility may be the technical spark.
The US Dollar rallied sharply today and brought down risk appetite trades but Market Forecast for 10-year yield suggests to look at any selling for new directional opportunities.
Technology, Consumer Discretionary and Communication Services continue to mask broader weakness in cyclical and economic-growth sensitive sectors.
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Stock Market Outlook (Video)
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