Click to Enlarge As the selling intensifies, a wider and wider swatch of the market is being pulled under. You can see this in the chart of S&P 500 stocks in uptrends. I throw a Parabolic SAR overly onto the chart to highlight shifts in trend. Incredibly, despite all the volatility we’ve seen in March so far, the indicator remains in uptrend mode after jumping higher in early February.
But on Monday, despite the market rebounding higher, weak buying interest is pushing the number of S&P 500 stocks in uptrends to the cusp of a downtrend — the last of which was triggered in early January.
The signal isn’t a 100% accurate — technical signals never are — but it does suggest that the bulls are losing interest with more and more stocks at these levels. And that’s not a good sign.