The major indices are under selling pressure this week as the S&P 500 began a new downtrend on Tuesday, joining the Russell 2000 downtrend that began December 1. The Nasdaq and the Nasdaq-100 remain in technical uptrends, but they too appear to be rolling over and any further weakness in the technology indices will produce new downtrends.
Some market pundits state the decline in stocks is due to the decline in oil prices. It seems the world is awash in crude as increased U.S. production and the Saudi attempt to crush shale producers has caused oil prices to drop more than 40% since June. It appears the energy market and its high yield bond component may be the near term driving force behind the drop in equity prices.
Whatever the cause, stocks are currently under distribution and patience is warranted until the markets stabilize and a new uptrend begins.