Fairlead Strategies analyst Katie Stockton warns investors of looming declines in the S&P 500 and Nasdaq-100 due to key technical sell signals. While equities face potential downturns, agricultural commodities like the Invesco DB Agriculture Fund are showing bullish momentum, indicating a possible shift in market trends.
S&P 500 and Nasdaq Face Short-Term Decline Risks
On Tuesday, analyst Katie Stockton of Fairlead Strategies issued a note in which she predicted that the S&P 500 and the Nasdaq-100 would fall in the near future due to important technical signs, Investing.com shares.
Stockton claims that yesterday, the NDX "flashed a daily MACD 'sell' signal," and that today, the SPX "is poised to follow."
Some say these signals point to increasing danger on the downside. "Initial downside risk for the SPX and NDX is defined by their 50-day MAs, near 5,780 and 20,140, respectively," he said.
Indicators Highlight Potential for Deeper Market Corrections
Although there are some negative short-term signs, Stockton says that "our intermediate-term gauges point higher for the SPX, for now." A "weekly stochastic downturn" may indicate a more substantial correction is on the horizon, though, as she warns.
The biotech industry is another area that Stockton points out as being weak. On Friday, the SPDR Biotech ETF "broke down below support near ~$95," indicating a loss in the intermediate term.
Biotech Sector Faces Further Declines
Based on stochastics indicating space to move lower and a "weekly MACD more decisively on a 'sell' signal," she finds that XBI's next support zone will be between $88 and $89, defined by a Fibonacci level and the weekly cloud.
Agricultural commodities are showing strength, according to Stockton, which contradicts the negative stock market prediction.
Agricultural Commodities Defy Equity Market Trends
One possible explanation is that the Invesco DB Agriculture Fund (DBA) is "emerging from a multi-week correction in its long-term uptrend." The final obstacle near $26.50 is within reach, according to her, because of the breakout above its daily cloud and improved intermediate-term gauges.
While commodities like DBA demonstrate durability, equities have short-term hurdles, according to the technical signs.


China Approves First Import Batch of Nvidia H200 AI Chips Amid Strategic Shift
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns
Samsung Electronics Posts Record Q4 2025 Profit as AI Chip Demand Soars
India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures
Trump to Announce New Federal Reserve Chair Pick as Powell Replacement Looms
SoftBank Shares Surge as It Eyes Up to $30 Billion New Investment in OpenAI
NVIDIA, Microsoft, and Amazon Eye Massive OpenAI Investment Amid $100B Funding Push
Apple Faces Margin Pressure as Memory Chip Prices Surge Amid AI Boom
Apple Earnings Beat Expectations as iPhone Sales Surge to Four-Year High
Nvidia’s $100 Billion OpenAI Investment Faces Internal Doubts, Report Says
Gold and Silver Prices Plunge as Trump Taps Kevin Warsh for Fed Chair
Rewardy Wallet and 1inch Collaborate to Simplify Multi-Chain DeFi Swaps with Native Token Gas Payments
Sandisk Stock Soars After Blowout Earnings and AI-Driven Outlook
American Airlines Plans Return to Venezuela Flights After U.S. Lifts Ban
Anthropic Raises 2026 Revenue Outlook by 20% but Delays Path to Profitability
U.S. Dollar Slides for Second Week as Tariff Threats and Iran Tensions Shake Markets 



