MACD Shows Stocks Enter ‘Much Needed Pause:’ Technical Analysis
This article is for subscribers only.
A trending measure of the Standard & Poor’s 500 Index sent out its first sell signal since August this week, suggesting the rally in U.S. shares may have entered “a much needed pause,” according to Concept Capital Inc.
The Moving Average Convergence/Divergence line, calculated by subtracting the S&P 500’s average level during the past 26 days from the average over the past 12 days, crossed this week below the “signal line” that plots the 9-day average difference between the two. The indicator shows the benchmark stock index, which has rallied 15 percent since this year’s low on July 2, may erase some gains or struggle to make new highs.