by Brooke Thackray, Horizons ETFs
The stock market has has strong run since the US election, but since the beginning of March not so much.
it's been stair-stepping its way down; if you look at the S&P 500 here what we're seeing here is we're seeing a series of lower highs, but technically we haven't had a breakdown because we haven't had any lower lows at this point.
We're just above support supports to 2320 the s&p500. If it does break down below that level it doesn't mean the stock market's about to fall apart but this means its a little bit weaker at that time and if we go a little further it could be in a downward channel where it's actually not falling apart but just intending to go down negative in this downward channel.
If it does that, it breaks that level of support, then that's actually going to be fairly weak. At that level we want to be taking a look a little further the riders about 2,300.
If it breaks below 2300 that means it is starting to get weak.
Now if we put it in a big picture here we're starting to see some technicals in the market that're softening up a little bit at the same time we're entering the six-month period where stocks tend not to do so well from May until October.
The confluence of these two factors mean the investors should start becoming cautious at this time.
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