Stocks have been set up for a near-term pullback that could give a year-end rally fresh legs into the new year, say some technicians.
John Kosar, chief strategist at Asbury Research, has been expecting a sell-off before Thanksgiving, and he says this could be it. The was under pressure Thursday, as oil prices fell. The index slid below 2,064, its 200-day moving average.
"We're up against a lot of overhead resistance," he said. "We had a nice move off those lows from August and September. We had a pretty good sell-off in high-yield bonds. What that effectively did was drive those yields up. Generally if you have widening corporate bond spreads that usually spooks the stock market, and that was one of the things I was looking at."