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Stock market volatility this week has triggered a new sell signal

Lawrence G. McMillan Published: March 16, 2023 at 7:12 p.m. ET Stay cautious until new highs outnumber new lows on the NYSE. MarketWatch photo illustration/iStockphoto The stock market, as measured by the S&P 500 Index SPX, rallied on Thursday and has confirmed 4080 as a strong resistance level, with further resistance up to 4200. On

stock-market-volatility-this-week-has-triggered-a-new-sell-signal

Lawrence G. McMillan

Stay cautious until new highs outnumber new lows on the NYSE.

MarketWatch photo illustration/iStockphoto

The stock market, as measured by the S&P 500 Index SPX, rallied on Thursday and has confirmed 4080 as a strong resistance level, with further resistance up to 4200. On the downside, there is support in the 3760-3850 trading range from last December. SPX has probed down into that range, and a break below 3760 would be extremely negative — not only from the viewpoint of violating support, but it is also considered a bear market condition if the December 2022 lows are taken out.

This week, SPX traded down sharply enough that…

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