We do not want to have a bullish or bearish bias but rather use technical analysis and inter-market analysis to tell us where the market could be headed next. Let’s get started:

NYMO:SPX 

NYMO (NYSE McClellan Ocsillator) is a market breadth indicator. Previous corrections have shown that they were met with breadth thrust reading of -80 (dashed blue line lower graph). So far this recent down turn can still continue lower and move the negative breadth to the -80 readings before a significant low is in. With the current geopolitical tensions and concern about monetary tightening and a rising yield curve this can spark further fear in the markets.

SPX %of stocks above 50-day MA