As the pair breaks lower, it signals that a majority of the components in the index are leading the move lower, and thus is a bearish sign.
The chart shows that prices had been in a strong uptrend since late June, and subsequently formed a bearish double-top pattern in August. The breaking of the upward trend line due to the Syrian conflict could be just the beginning of the correction lower.The fear of higher rates and less Fed intervention could lead to weakness throughout the fall season, with a potential move higher in winter. Stay attuned to the actions of the Fed and Syria to gauge market sentiment and future direction. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV