FxWirePro: U.S. stock markets show first major sign of weakness in years

In many years, probably for the first time since 2015, the U.S. stock markets are showing major signs of weakness. While the U.S. tech-heavy index NASDAQ100 is still positive for the year, both the S&P500 & Dow Jones Industrial average have erased their gains for the year,

• Over the past one month, S&P500 is down more than 8 percent and now, flat for the year.
• NASDAQ100 has declined more than 9 percent in last one month, up 7.6 percent for the year so far.
• The Dow has declined almost 6.7 percent in last one month, and now, flat for the year.

One of our very successful, medium to long-term prediction model is flashing red signs for the U.S. benchmark stock indices for the first time in years.

The model suggests that the U.S. benchmark stock index S&P500 would decline by another 13-15 percent before any major buying takes place, which basically indicates that the current rallies on the news and short covering would present opportunities to sell the indices. Expectations are similar for both NASDAQ and the Dow.