After hitting a record high of 1687 a month ago, the once-hot S&P 500 (^GSPC) has suddenly turned cold. Not ice cold or bear market cold, but rather what Jonathan Krinsky, chief technical market analyst at Miller Tabak & Co. might call "corrective phase" cold.
"May 22nd (was a) key reversal day when we made those all-time new highs then traded lower on the day," Krinksy says in the attached video, highlighting the market's recent pattern of setting lower highs. "To have a little bit of chop after such a significant (13-year) breakout should not be unexpected and I think that's really what we're seeing going on here right now."
Also keeping him on edge, he says, is the fact that we currently have "a declining 20-day moving average, which shows that short-term momentum is still moving lower."
That said, his caution is far from panic mode as he also take comfort from the continued support and uptrend that the 50-day moving average offers.Read More »from Key Market Technical Levels to Watch Ahead of the Fed