S&P 500 Looking very Heavy

Ever since Crude Oil began rallying, the US equity markets have been encountering stiff headwinds. Today, even with crude moving lower, stocks have been unable to get much of a bounce higher although they did attempt moving higher around midday. That bounce ran into eager sellers and down it went again.

From a technical perspective, this is the first time since August of last year than the S&P has dropped below the 50 day moving average and not bounced off of it. How it closes today will therefore be closely watched by technicians to see if we are going to experience a deeper pullback in stocks than we have thus far experienced this year.

On the daily chart the big down day in late February is now looking more and more like it was the near term top in a 6 month nearly vertical rally.