Slumping U.S. stock market technical indicators flash warning sign
Indicators that investors use to gauge the health of the U.S. stock market have taken a turn for the worse, fueling worries that the benchmark index may revisit its mid-June bear market low.
The S&P 500 is down 7% since mid-August following a sharp summer rally, battered by expectations that the Federal Reserve will raise rates higher than previously anticipated in its fight to bring down consumer prices from their 40-year highs.
The retreat in stocks has given more reason for caution to those who track market phenomena such as breadth, momentum and trading patterns to inform their investment decisions. While many of these indicators were painting an optimistic picture just a few weeks ago, they tell a less bullish story now, raising worries that this year’s selloff in markets may not be over.
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