Sunday, January 1, 2017

S&P 500: Negative Action And Technical Break

*After a huge rally the S&P showed some important weakness.

*With multiple fundamental risk catalysts coming when the year turns investors are getting itchy.

*Seasonally stocks should be holding and moving up. When they aren't "action" tells us something is brewing.

*There could be a reset of market prices coming around the corner that today's action is predicting.

The S&P 500 (NYSEARCA:SPY) has had a great run since the elections. It looks like it's starting to show some breaking down even though this is supposed to be a seasonally strong period for stocks. That negative "action" could hint to more selling to come driven as the market resets to medium term 2017 fundamentals.

Source: Interactive Brokers

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