Wednesday, 8 March 2017

Markets fall, triggering warning signal

Markets fell on Tuesday.

The S&P 500 fell 0.3 percent for the second consecutive day, the STOXX Europe 600 fell 0.3 percent, its fourth consecutive decline, and the Nikkei 225 fell 0.1 percent.

Analysts mostly remain sanguine about the market.

“We had a very good run-up, especially last week, so the market is in consolidation at the moment,” said Mark Kepner, managing director of sales and trading at Themis Trading.

However, a warning sign did flash on Tuesday, being the second consecutive day that the number of New York Stock Exchange-traded stocks hitting 52-week lows exceeded those that hit 52-week highs.

Chart specialist Tom McClellan said on Tuesday that lows surpassing highs within seven trading days of a 1-year high for the S&P 500 is an Ohama Titanic Syndrome, a preliminary sell signal. The S&P 500 put in a high on 1 March.

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