Technical resistance comes into play for major stock indexes as the early 2013 rally stalls out.
The stock market rose some during Thursday's day session, but the S&P 500 E-mini declined as much as 50 points yesterday evening.
On Monday, the stock market faded, giving doubt to the staying power of the intermediate bullish cycle.
Short-term vulnerability was amplified Thursday when major indexes suffered modest losses.
Major indexes post fractional gains Wednesday on continuing lighter activity exacerbated by the pre-holiday lull.
If the recent rally is legitimate and has more room to go on the upside, technical indicators will need to confirm.
Ongoing negative divergence by a key technical indicator in face of market strength reflects that smart money has been exiting, if not simply avoiding, equities on net basis.
Weekly Review: Last week may have signaled an end to the recent rally. While only the Dow displayed a key reversal technical signal, all major indexes were negative on the week.
Technical pattern in most major stock indexes suggest the end may be near for recent stock market gains.
Weekly Review: Major stock indexes are showing persistent strength, threatening major highs, but prices are higher on noticeably weaker volume.