Market Insider

Why technicians see red flags for stocks

A trader works the floor of the NYSE.
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As the market pushes to new highs, technical strategists are suddenly sounding a lot more bearish than other market pundits, who rely more on fundamentals.

Many analysts say improving data—like Friday's October jobs report—means the market will continue to move higher.

(Read more: The deceptively simple reason stocks won't quit)

However, strategists who make calls on the market using technical analysis say a correction is looming.

(Watch this: Seema Moday and Dominic Chu make the bull and bear cases)

"With each new high in the market, less and less stocks are in uptrends. That's a problem, … an unsustainable one. Eventually the major averages will catch up," said technician J.C. Parets, founder and president of Eagle Bay Capital, in an interview.