Frank looks at the S&P 500 after the market changed its behavior. Recent pullbacks are acting unlike those earlier this year.
He points out the first clear bearish pattern we have seen in months. The index broke out of a trading range that lasted many weeks. Hitting the downside targets is now a key focus.
Buying on dips is getting weaker. Volatility is rising, with price moves of about 1% happening often. The market is also making lower highs more frequently.
Momentum indicators are slipping, and the breadth of advancing stocks is under pressure. Fewer strong closing days mean the market is losing strength.
The big question is whether the market can calm down and build a new base, or if the downside will keep growing.
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