The broader US stock market looks to break out of the higher technical pattern it has been following since March, and a pullback could start very soon on the S&P 500 index, Chris Locke, managing director at Oystertrade.com said Wednesday.
If the S&P can’t hold above 944, it will see further weakness, moving below 900, Locke said.
“We’re just about to see some important work ahead to the downside,” he added.
The S&P 500 closed 1.3 percent lower at 994.35 on Tuesday.
Crude oil is also due to stall, but gold remains a buy on any dips as it move to $900 an ounce, moving in contrast to the weak stock market, Locke said.
Oil is currently trading below $70 a barrel, while gold is trading down around $943 an ounce.