NEW YORK (TheStreet) - If you haven't become more defensive in your investment strategies beware that market headwinds have intensified. Given higher yields, relatively weak crude oil prices and negative divergences in the major equity averages, its time to book profits before a stock marker peak is confirmed. This includes major benchmark stocks JPMorgan Chase (JPM), Wells Fargo (WFC) and Exxon Mobil (XOM).
Fundamentally the stock market remains under a ValuEngine valuation warning with 82.1% over all stocks overvalued 48.7% by 20% or more.
Technically the major equity averages remain overbought on their weekly charts, but beware that this week's stock market declines have these averages straddling their five-week modified moving averages at Thursday's closes. My technical signal for a stock market peak is weekly closes below the five-week modified moving averages with 12x3x3 weekly slow stochastic readings declining below 80.00 on a scale of 00.00 to 100.00.
The five-week MMAs are 15,800 Dow Industrial Average, 1774.1 S&P 500, 3957 Nasdaq, 7049 Dow transportation average, 1112.93 Russell 2000.
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