Two charts indicate that the recent stock market sell-off may not be over yet. According to data analyzed by Yahoo Finance, the charts show that there could be further declines in the market in the near future.
The first chart displays the performance of the S&P 500 index compared to its 200-day moving average. When the index falls below this average, it is often seen as a bearish signal indicating potential further declines. Currently, the S&P 500 is below its 200-day moving average, suggesting that the sell-off may continue.
The second chart shows the market breadth, which measures the number of stocks participating in a market rally or decline. In a healthy market, a large number of stocks should be moving in the same direction. However, the chart indicates that fewer stocks are participating in the recent rally, signaling potential weakness in the market.
While these charts do not guarantee future performance, they serve as important indicators for investors to consider. It is important to stay informed and monitor market trends closely in order to make well-informed investment decisions.