Each of the five major averages have a technical sign that indicates that the stock market is rolling over.

The Dow Jones Industrial Average (DJI) (34,960) set its all-time intraday high at 35,631.19 on Monday, August 16. Its technical warning is that a weekly close below last week’s low of 35,041.24 is a weekly key reversal. A secondary warning would be a weekly close below its five-week modified moving average at 34,911.13. The initial downside risk is to its annual pivot at 33,425. Its semiannual and quarterly value levels are 32,997 and 31,968.

The S&P 500 Index (SPX) (4,400.27) set its all-time intraday high at 4,479.25 on Monday, August 16. Like the Dow 30, its technical warning is that a weekly close below last week’s low of 4,424.74 is a weekly key reversal. A secondary warning would be a weekly close below its five-week modified moving average at 4,373.27. The index remains in an inflating parabolic formation as its 12x3x3 weekly slow stochastic reading is above 90,00 at 93.34. The initial downside risk is to its quarterly value level at 4,075. Its annual pivot is at 3,932.

The Nasdaq Composite (IXIC) (14,525.91) set its all-time intraday high at 14,896.48 on August 5. Its technical warning is a weekly close below its five-week modified moving average at 14,559.61. This would downgrade its weekly chart to neutral from positive but overbought. It’s above its quarterly pivot at 14,447, but a close below this level indicates risk to its semiannual and annual value levels at 12,465 and 12,000.

The Dow Jones Transport Average (DJT) (14,704.26) set its all-time intraday high at 16,170.05 back on May 10. Its technical warning is a weekly close below its five-week modified moving average at 14,774.08. This would downgrade its weekly chart to neutral from positive. Its annual pivot is 14,424 and a close below this level indicates risk to its semiannual and quarterly value levels at 13,258 and 13,160.

The Russell 2000 Index (RUT) (2,158.77) set its all-time intraday high at 2,360.17 on March 15. Its technical warning is that it remains below its five-week modified moving average at 2,224.35. This would downgrade its weekly chart to negative from neutral as its 12x3x3 weekly slow stochastic reading is declining. There is a double-top from the highs set during the weeks of March 19 and June 6. Its annual pivot is 2,120 and the risk below this level is its quarterly and semiannual value levels at 2,013 and 1,921.

A sixth sign comes from the Philadelphia Semiconductor Index (SOX) (3,208.83). It set its 52-week high of 3,451.41 on August 5. It will have a negative weekly chart on a close on Friday below its five-week modified moving average at 3,273.05. Below its quarterly pivot at 3,378 is risk to its semiannual and annual value levels at 2,707 and 2,424.

Source: Forbes