I often talk about the importance of following your process (and the trend) with investing.

It’s also important to understand how markets can come undone (i.e. when to see the flashing yellow light).

Though the broader trend is still higher, we’ve seen some short-term concerns emerge. So how do we approach these warning signs?  Start with price.

Looking at the chart of the S&P 500 Index (INDEXSP:.INX), we can see some technical levels that active investors should be aware of.

The first price support level is 2566, which is the low from a couple weeks ago. We hit that support level last week and this morning went right to that support again.  A break below that level would be the first “red flag” for a correction.  Chart below:

sp 500 stock market concerns investing chart_new_november 14

 

Traders have also seen some leadership rotation.  The Utilities Sector has been one of the leaders this week.

Again, this is still a short-term issue but one I’ll be following.

You can get deeper insights and more meaningful analysis with my premium service over at Sierra Alpha.

 

Twitter:  @DKellerCMT

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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