Warning signs of a correction are emerging on the charts for the S&P 500, the benchmark U.S. stock index, technical analyst Ron Meisels warns in a new report.
"Enthusiasm for this vibrant but aging bull market must be tempered by the technical indicators that suggest that the markets are weakening and are preparing for either a pause or a correction," said Mr. Meisels, the president of Phases & Cycles Inc. and considered as one of Canada's top technical analysts.
He believes the reward-to-risk ratio for investors has declined in recent days as the S&P 500 climbed to record highs. He also cautions that stocks that are well above their 200-day moving averages are particularly vulnerable to a sell-off.
You can read more on his views by clicking on the full report to the left. (You can also click here).