Summary

If the stock market deteriorates (price, breadth, momentum) too way more, we might need to tug our bullish intermediate-term technical outlook. While the foremost averages remain near their all-time highs and haven’t yet shown loads of deterioration or longer-term technical damage, they’ve suffered short- to intermediate-term damage that warrants a minimum of a yellow flag. By the use of examples, the S&P 500 (SPX) is back below its 50-day average, the five-day/13-day exponential moving average (EMA) crossover stays on a sell signal, the 21-day rate-of-change (ROC) is in negative territory, the SPX is below its middle each day Bollinger Band, the last two rallies have failed, and the each day Vortex indicator stays on a sell signal. The SPX has traced out two weekly and two monthly bearish momentum divergences. The weekly divergences return to early 2024, while the monthly divergences return to 2018. The last time we saw anything near this length of monthly divergences was from May 1996 until August 2000. As well as, the weekly Coppock Curve has traced out a bearish divergence for the primary time because the late 2020/late 2021 period — and that definitely didn’t end well. Breadth is melting down i