Market Top?

Posted on September 16, 2021 by Scott Shuda

A good piece from CNBC this morning, providing some color on the steady drum beat of opinion that the market is due for a correction. Entitled “The stock market is undergoing a slow motion deterioration,” the piece contends”

While the S&P 500 is still about 1% from its highs, those land mines are taking their toll on large sectors of the market.

“For the last several months, most stocks have declined more frequently than they have advanced–evidence of a weakening market condition,” CFRA’s Sam Stovall said in a recent note to clients.

Other strategists have noticed this divergence as well. “As the equity market reaches new highs, the divergence in the advance-decline line suggests we may be approaching a top,” Guggenheim’s Scott Minerd said in a recent tweet. “In the past, such divergence has indicated the market is vulnerable to a sell-off.”

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