Stock Market Outlook: Technical Resistance Could Unleash Fresh Volatility
Breadth thrust buy signals? Check. A collapse in volatility? Check.
To many chart readers, it seemed like the latest technical signals were pointing to a fresh and lasting upswing in the stock market — but not so fast.
The S&P 500 is approaching key resistance levels that could unleash a wave of selling and increase volatility in the near term.
Since the benchmark index rallied 14% from tariff-induced lows earlier this month, it is fast approaching its declining 50-day moving average and 200-day moving average.
When the stock market is in a downtrend, as it has been since it made a series of lower highs and lower lows in March and April, the declining moving averages typically represent a level where sellers…
